Cover page
Cover page | 6 Months Ended |
Jun. 30, 2021 | |
Cover [Abstract] | |
Document Type | 6-K |
Entity File Number | 001-10533 |
Entity Registrant Name | Rio Tinto plc |
Entity Address, Address Line One | 6 St James’s Square |
Entity Address, City or Town | London |
Entity Address, Postal Zip Code | SW1Y 4AD |
Entity Address, Country | GB |
Amendment Flag | false |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q2 |
Entity Central Index Key | 0000863064 |
Current Fiscal Year End Date | --12-31 |
Document Period End Date | Jun. 30, 2021 |
Group income statement
Group income statement - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Consolidated operations | |||
Consolidated sales revenue | $ 33,083 | $ 19,362 | |
Net operating costs (excluding items shown separately) | (15,322) | (12,217) | |
Impairment charges | [1] | 0 | (1,015) |
Exploration and evaluation costs | (324) | (280) | |
Operating profit | 17,437 | 5,850 | |
Share of profit after tax of equity accounted units | 556 | 198 | |
Impairment of investments in equity accounted units | [1] | 0 | (119) |
Profit before finance items and taxation | 17,993 | 5,929 | |
Finance items | |||
Net exchange gains/(losses) on net external and intragroup debt balances | 375 | (165) | |
Net losses on derivatives not qualifying for hedge accounting | (63) | (206) | |
Finance income | 42 | 104 | |
Finance costs | [2] | (91) | (169) |
Amortisation of discount on provisions | (207) | (214) | |
Net finance income (expense) | 56 | (650) | |
Profit before taxation | 18,049 | 5,279 | |
Taxation | (4,981) | (1,828) | |
Profit after tax for the period | 13,068 | 3,451 | |
– attributable to Rio Tinto | 12,313 | 3,316 | |
– attributable to non-controlling interests | $ 755 | $ 135 | |
Basic earnings per share (in USD per share) | [3] | $ 7.610 | $ 2.050 |
Diluted earnings per share (in USD per share) | [3] | $ 7.561 | $ 2.036 |
[1] | Refer to Impairment charges note on pages F-13 and F-14. | ||
[2] | Finance costs in the income statement include hedging adjustments and are net of amounts capitalised of US$174 million (30 June 2020: US$175 million). | ||
[3] | For the purpose of calculating basic earnings per share, the weighted average number of Rio Tinto plc and Rio Tinto Limited shares outstanding during the period was 1,618.1 million (30 June 2020: 1,617.3 million), being the weighted average number of Rio Tinto plc shares outstanding of 1,246.9 million (30 June 2020: 1,246.5 million), plus the weighted average number of Rio Tinto Limited shares outstanding of 371.2 million (30 June 2020: 370.8 million). The profit figures used in the calculation of basic and diluted earnings per share are the profits attributable to owners of Rio Tinto. |
Group income statement (Parenth
Group income statement (Parenthetical) - USD ($) shares in Millions, $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings per share [line items] | ||
Borrowing costs capitalised | $ 174 | $ 175 |
PLC And Limited | ||
Earnings per share [line items] | ||
Weighted average number of ordinary shares outstanding (in shares) | 1,618.1 | 1,617.3 |
Rio Tinto Plc | ||
Earnings per share [line items] | ||
Weighted average number of ordinary shares outstanding (in shares) | 1,246.9 | 1,246.5 |
Rio Tinto Limited | ||
Earnings per share [line items] | ||
Weighted average number of ordinary shares outstanding (in shares) | 371.2 | 370.8 |
Group statement of comprehensiv
Group statement of comprehensive income - USD ($) $ in Millions | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | ||||
Statement of comprehensive income [abstract] | |||||
Profit after tax for the period | $ 13,068 | $ 3,451 | |||
Items that will not be reclassified to profit or loss: | |||||
Actuarial gains/(losses) on post-retirement benefit plans | 712 | (283) | |||
Changes in the fair value of equity investments held at fair value through other comprehensive income (FVOCI) | 12 | (4) | |||
Tax relating to these components of other comprehensive income | (219) | 75 | |||
Share of other comprehensive income/(losses) of equity accounted units, net of tax | 12 | (6) | |||
Items that will not be reclassified to profit or loss | 517 | (218) | |||
Items that have been/may be subsequently reclassified to profit or loss: | |||||
Currency translation adjustment | [1] | (365) | (945) | ||
Fair value movements: | |||||
– Cash flow hedge (losses)/gains | (142) | 69 | |||
– Cash flow hedge (gains)/losses transferred to the income statement | (20) | 21 | |||
Net change in costs of hedging | (20) | 10 | |||
Tax relating to these components of other comprehensive loss/(income) | 55 | (46) | |||
Share of other comprehensive income/(losses) of equity accounted units, net of tax | 10 | (32) | |||
Other comprehensive income/(loss) for the period, net of tax | 35 | (1,141) | |||
Total comprehensive income for the period | 13,103 | [2] | 2,310 | [3] | |
– attributable to owners of Rio Tinto | 12,342 | 2,289 | |||
– attributable to non-controlling interests | $ 761 | $ 21 | |||
[1] | Excludes a currency translation loss of US$82 million for the period ended 30 June 2021 (30 June 2020: loss of US$75 million) arising on Rio Tinto Limited’s share capital, which is recognised in the Group statement of changes in equity on pages F-6 and F-7. | ||||
[2] | Refer to Group statement of comprehensive income for further details. | ||||
[3] | Refer to Group statement of comprehensive income for further details. |
Group statement of comprehens_2
Group statement of comprehensive income (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of comprehensive income [abstract] | ||
Currency translation loss | $ (82) | $ (75) |
Group cash flow statement
Group cash flow statement - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Statement of cash flows [abstract] | |||
Cash flows from consolidated operations | [1] | $ 18,179 | $ 8,643 |
Dividends from equity accounted units | 726 | 183 | |
Cash flows from operations | 18,905 | 8,826 | |
Net interest paid | (208) | (258) | |
Dividends paid to holders of non-controlling interests in subsidiaries | (407) | (215) | |
Tax paid | (4,629) | (2,725) | |
Net cash generated from operating activities | 13,661 | 5,628 | |
Cash flows from investing activities | |||
Purchases of property, plant and equipment and intangible assets | (3,336) | (2,693) | |
Disposals of subsidiaries, joint ventures, unincorporated joint operations and associates | 10 | 10 | |
Purchases of financial assets | [2] | (18) | (20) |
Sale of financial assets | [2] | 16 | 87 |
Sales of property, plant and equipment and intangible assets | 26 | 28 | |
Net receipts/(funding) from/of equity accounted units | 28 | ||
Net receipts/(funding) from/of equity accounted units | (14) | ||
Other investing cash flows | [3] | (33) | (333) |
Net cash used in investing activities | (3,307) | (2,935) | |
Cash flows before financing activities | 10,354 | 2,693 | |
Cash flows from financing activities | |||
Equity dividends paid to owners of Rio Tinto | (6,435) | (3,607) | |
Proceeds from additional borrowings | 137 | 38 | |
Repayment of borrowings and associated derivatives | [4] | (257) | (593) |
Lease principal payments | (170) | (154) | |
Proceeds from issue of equity to non-controlling interests | 28 | 79 | |
Own shares purchased from owners of Rio Tinto | 0 | (208) | |
Other financing cash flows | 6 | 0 | |
Net cash flows used in financing activities | (6,691) | (4,445) | |
Effects of exchange rates on cash and cash equivalents | (21) | (21) | |
Net increase/(decrease) in cash and cash equivalents | 3,642 | (1,773) | |
Opening cash and cash equivalents less overdrafts | 10,381 | 8,027 | |
Closing cash and cash equivalents less overdrafts | [5] | $ 14,023 | $ 6,254 |
[1] | (a) Cash flows from consolidated operations Profit after tax for the period 13,068 3,451 Adjustments for: – Taxation 4,981 1,828 – Finance items (56) 650 – Share of profit after tax of equity accounted units (556) (198) – Impairment charges of investments in equity accounted units after tax — 119 – Impairment charges — 1,015 – Depreciation and amortisation 2,307 2,092 – Provisions (including exchange differences on provisions) 485 336 – Pension settlement (f) (291) — Utilisation of provisions (349) (254) Utilisation of provision for post-retirement benefits (76) (97) Change in inventories (518) (289) Change in receivables and other assets (g) (966) 508 Change in trade and other payables 250 (262) Other items (h) (100) (256) 18,179 8,643 | ||
[2] | During the six months to 30 June 2021, the Group invested a further US$15 million (30 June 2020: received net proceeds of US$84 million) within a separately managed portfolio of fixed income instruments. Purchases and sales of these securities are reported on a net cash flow basis within ‘Sales of financial assets’ or 'Purchases of financial assets' depending on the overall net position at each reporting date. | ||
[3] | During 2020, Energy Resources of Australia Ltd (ERA) deposited US$299 million into a trust fund controlled by the Government of Australia. ERA is entitled to reimbursement from the fund once specific phases of rehabilitation relating to the Ranger Project are completed. The fund is outside of the scope of IFRS 9 - 'Financial Instruments' and therefore classified as an "other receivable" within 'Receivables and other assets'. At 30 June 2021 the total amount held in the trust fund was US$402 million (31 December 2020: US$410 million). | ||
[4] | During 2020, we repaid our €402 million (nominal value) Rio Tinto Finance plc Euro Bonds on their maturity. The cash outflow relating to the repayment of the bond and the realised loss on the derivatives were recognised within 'Repayment of borrowings and associated derivatives' and totalled US$526 million. | ||
[5] | Closing cash and cash equivalents less overdrafts for the purposes of the cash flow statement differs from cash and cash equivalents on the Group balance sheet as per the following reconciliation: Closing cash and cash equivalents less overdrafts 30 June 2021 31 December 2020 30 June 2020 US$m US$m US$m Balance per Group balance sheet 14,027 10,381 6,269 Bank overdrafts repayable on demand (unsecured) (4) — (15) Balance per Group cash flow statement 14,023 10,381 6,254 |
Group cash flow statement (Pare
Group cash flow statement (Parenthetical) € in Millions, $ in Millions | 6 Months Ended | ||||||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2020EUR (€) | Dec. 31, 2020USD ($) | ||||
Cash flows from consolidated operations | |||||||
Profit after tax for the period | $ 13,068 | $ 3,451 | |||||
Adjustments for: | |||||||
– Taxation | 4,981 | 1,828 | |||||
– Finance items | (56) | 650 | |||||
– Share of profit after tax of equity accounted units | (556) | (198) | |||||
– Impairment charges of investments in equity accounted units after tax | 0 | 119 | |||||
– Impairment charges | 0 | 1,015 | |||||
– Depreciation and amortisation | 2,307 | 2,092 | |||||
– Provisions (including exchange differences on provisions) | 485 | 336 | |||||
- Pension settlement | [1] | (291) | 0 | ||||
Utilisation of provisions | (349) | (254) | |||||
Utilisation of provision for post-retirement benefits | (76) | (97) | |||||
Change in inventories | (518) | (289) | |||||
Change in receivables and other assets | [2] | (966) | 508 | ||||
Change in trade and other payables | 250 | (262) | |||||
Other items | [3] | (100) | (256) | ||||
Cash flows from consolidated operations | [4] | 18,179 | 8,643 | ||||
Purchases of financial assets | [5] | 18 | 20 | ||||
Amount held in trust fund | 402 | $ 410 | |||||
Buy-back of bonds | 526 | € 402 | |||||
Cash and cash equivalents | 14,027 | 6,269 | 10,381 | ||||
Bank overdrafts repayable on demand (unsecured) | (4) | (15) | 0 | ||||
Balance per Group cash flow statement | 14,023 | [6] | 6,254 | [6] | 10,381 | ||
Employee benefits pre-tax charge | 3 | ||||||
Deferred tax liabilities | 3,501 | $ 3,239 | |||||
Gains (losses) on currency forward contracts | 10 | (200) | |||||
MONGOLIA | |||||||
Adjustments for: | |||||||
Deferred tax liabilities | 356 | ||||||
Wholly or partly funded defined benefit plans | |||||||
Adjustments for: | |||||||
Present value of pension assets | 89 | ||||||
Cash payment to execute buyout of partially funded pension scheme | 294 | ||||||
Energy Resources of Australia Limited | |||||||
Adjustments for: | |||||||
Deposits into trust fund | 299 | ||||||
Fixed Income Instruments | |||||||
Adjustments for: | |||||||
Purchases of financial assets | $ 84 | ||||||
Other Investments | |||||||
Adjustments for: | |||||||
Cash movements excluding exchange movements | $ 15 | ||||||
[1] | During the period ended 30 June 2021 , the Group entered into an agreement to transfer its partially funded pension obligations in France to an external insurer. The insurance premium was paid by the transfer of the existing pension assets valued at US$89 million plus an additional cash payment of €247 million (US$294 million ), of which US$3 million is included in 'Profit after tax'. The Group has no further legal or constructive obligation relating to the insured pensions and has reflected this transaction as a settlement. | ||||||
[2] | The Mongolian Tax Authority required payment by Oyu Tolgoi of US$356 million in relation to disputed tax matters. Oyu Tolgoi continues to dispute the matters and has classified amounts subject to international arbitration as prepayments pending resolution. | ||||||
[3] | Includes realised gains on currency forward contracts not designated in a hedge relationship of US$10 million (30 June 2020: realised losses of US$200 million). | ||||||
[4] | (a) Cash flows from consolidated operations Profit after tax for the period 13,068 3,451 Adjustments for: – Taxation 4,981 1,828 – Finance items (56) 650 – Share of profit after tax of equity accounted units (556) (198) – Impairment charges of investments in equity accounted units after tax — 119 – Impairment charges — 1,015 – Depreciation and amortisation 2,307 2,092 – Provisions (including exchange differences on provisions) 485 336 – Pension settlement (f) (291) — Utilisation of provisions (349) (254) Utilisation of provision for post-retirement benefits (76) (97) Change in inventories (518) (289) Change in receivables and other assets (g) (966) 508 Change in trade and other payables 250 (262) Other items (h) (100) (256) 18,179 8,643 | ||||||
[5] | During the six months to 30 June 2021, the Group invested a further US$15 million (30 June 2020: received net proceeds of US$84 million) within a separately managed portfolio of fixed income instruments. Purchases and sales of these securities are reported on a net cash flow basis within ‘Sales of financial assets’ or 'Purchases of financial assets' depending on the overall net position at each reporting date. | ||||||
[6] | Closing cash and cash equivalents less overdrafts for the purposes of the cash flow statement differs from cash and cash equivalents on the Group balance sheet as per the following reconciliation: Closing cash and cash equivalents less overdrafts 30 June 2021 31 December 2020 30 June 2020 US$m US$m US$m Balance per Group balance sheet 14,027 10,381 6,269 Bank overdrafts repayable on demand (unsecured) (4) — (15) Balance per Group cash flow statement 14,023 10,381 6,254 |
Group balance sheet
Group balance sheet - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | |
Non-current assets | |||
Goodwill | $ 945 | $ 946 | |
Intangible assets | 2,809 | 2,755 | |
Property, plant and equipment | 63,835 | 62,882 | |
Investments in equity accounted units | 3,660 | 3,764 | |
Inventories | 174 | 174 | |
Deferred tax assets | 3,400 | 3,385 | |
Receivables and other assets | 2,139 | 1,796 | |
Tax recoverable | 27 | 4 | |
Other financial assets | 687 | 829 | |
Total non-current assets | 77,676 | 76,535 | |
Current assets | |||
Inventories | 4,448 | 3,917 | |
Receivables and other assets | 4,322 | 3,644 | |
Tax recoverable | 55 | 62 | |
Other financial assets | 2,913 | 2,851 | |
Cash and cash equivalents | 14,027 | 10,381 | |
Total current assets | 25,765 | 20,855 | |
Total assets | 103,441 | 97,390 | |
Current liabilities | |||
Borrowings and other financial liabilities | (704) | (607) | |
Trade and other payables | (7,523) | (7,421) | |
Tax payable | (2,015) | (1,850) | |
Provisions including post-retirement benefits | (1,834) | (1,729) | |
Total current liabilities | (12,076) | (11,607) | |
Non-current liabilities | |||
Borrowings and other financial liabilities | (13,210) | (13,408) | |
Trade and other payables | (796) | (820) | |
Tax payable | (613) | (477) | |
Deferred tax liabilities | (3,501) | (3,239) | |
Provisions including post-retirement benefits | (15,076) | (15,936) | |
Total non-current liabilities | (33,196) | (33,880) | |
Total liabilities | (45,272) | (45,487) | |
Net assets | 58,169 | 51,903 | |
Capital and reserves | |||
Share premium account | 4,320 | 4,314 | |
Other reserves | 11,509 | 11,960 | |
Retained earnings | 33,240 | 26,792 | |
Equity attributable to owners of Rio Tinto | 52,975 | 47,054 | |
Attributable to non-controlling interests | 5,194 | 4,849 | |
Total equity | 58,169 | 51,903 | |
Rio Tinto Plc | |||
Capital and reserves | |||
Share capital | [1] | 207 | 207 |
Rio Tinto Limited | |||
Capital and reserves | |||
Share capital | [1] | $ 3,699 | $ 3,781 |
[1] | At 30 June 2021, Rio Tinto plc had 1,247.8 million ordinary shares in issue and held by the public, and Rio Tinto Limited had 371.2 million shares in issue and held by the public. There were no cross holdings of shares between Rio Tinto Limited and Rio Tinto plc in either period presented. |
Group balance sheet (Parentheti
Group balance sheet (Parenthetical) shares in Millions | 6 Months Ended |
Jun. 30, 2021shares | |
Rio Tinto Plc | |
Statements [Line Items] | |
Weighted average number of ordinary shares outstanding (in shares) | 1,247.8 |
Rio Tinto Limited | |
Statements [Line Items] | |
Weighted average number of ordinary shares outstanding (in shares) | 371.2 |
Group statement of changes in e
Group statement of changes in equity - USD ($) $ in Millions | Total | Special Dividends | Total | Share capital | Share premium account | Other reserves | Retained earnings | Non-controlling interests | |
Opening balance at Dec. 31, 2019 | $ 45,242 | $ 40,532 | $ 3,655 | $ 4,313 | $ 9,177 | $ 23,387 | $ 4,710 | ||
Total comprehensive income for the period | [1] | 2,310 | 2,289 | (818) | 3,107 | 21 | |||
Currency translation arising on Rio Tinto Limited's share capital | (75) | (75) | (75) | ||||||
Dividends | (3,927) | (3,607) | (3,607) | (320) | |||||
Share buy-back | [2] | (1) | (1) | (1) | |||||
Own shares purchased from Rio Tinto shareholders to satisfy share awards to employees | [3] | (30) | (30) | (12) | (18) | ||||
Change in equity interest held by Rio Tinto | 0 | 58 | 58 | (58) | |||||
Treasury shares reissued and other movements | 1 | 1 | 1 | ||||||
Equity issued to holders of non-controlling interests | 79 | 79 | |||||||
Employee share options and other IFRS 2 charges to the income statement | 57 | 57 | 23 | 34 | |||||
Closing balance at Jun. 30, 2020 | $ 43,656 | 39,224 | 3,580 | 4,314 | 8,370 | 22,960 | 4,432 | ||
Dividends recognised as distributions to owners per share | $ 2.310 | ||||||||
Dividends per share: proposed in the announcement of the results for the period (in USD per share) | $ 1.550 | $ 0 | |||||||
Special dividends per share: proposed in the announcement of the results for the period | 0 | ||||||||
Opening balance at Dec. 31, 2020 | $ 51,903 | 47,054 | 3,988 | 4,314 | 11,960 | 26,792 | 4,849 | ||
Total comprehensive income for the period | [4] | 13,103 | 12,342 | (466) | 12,808 | 761 | |||
Currency translation arising on Rio Tinto Limited's share capital | (82) | (82) | (82) | ||||||
Dividends | (6,842) | (6,435) | (6,435) | (407) | |||||
Own shares purchased from Rio Tinto shareholders to satisfy share awards to employees | [5] | (17) | (17) | (13) | (4) | ||||
Change in equity interest held by Rio Tinto | 0 | 37 | 37 | (37) | |||||
Treasury shares reissued and other movements | 6 | 6 | 6 | ||||||
Equity issued to holders of non-controlling interests | 28 | 28 | |||||||
Employee share options and other IFRS 2 charges to the income statement | 70 | 70 | 28 | 42 | |||||
Closing balance at Jun. 30, 2021 | $ 58,169 | $ 52,975 | $ 3,906 | $ 4,320 | $ 11,509 | $ 33,240 | $ 5,194 | ||
Dividends recognised as distributions to owners per share | $ 3.090 | ||||||||
Dividends per share: proposed in the announcement of the results for the period (in USD per share) | $ 3.760 | 0.930 | |||||||
Special dividends per share: proposed in the announcement of the results for the period | $ 1.850 | ||||||||
[1] | Refer to Group statement of comprehensive income for further details. | ||||||||
[2] | In 2020, the amount of US$1 million together with the amounts paid during the period in respect of an irrevocable contract in place at the beginning of the year to cover the share buy-back programme totalled US$208 million as reported in the cash flow statement. | ||||||||
[3] | Net of contributions received from employees for share awards to employees. | ||||||||
[4] | Refer to Group statement of comprehensive income for further details. | ||||||||
[5] | Net of contributions received from employees for share awards to employees. |
Group statement of changes in_2
Group statement of changes in equity (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Share buy back | [1] | $ 1 | |
Payments for entity's shares | $ 0 | 208 | |
Retained earnings | |||
Share buy back | [1] | $ 1 | |
[1] | In 2020, the amount of US$1 million together with the amounts paid during the period in respect of an irrevocable contract in place at the beginning of the year to cover the share buy-back programme totalled US$208 million as reported in the cash flow statement. |
Rio Tinto financial information
Rio Tinto financial information by business unit | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of operating segments [abstract] | |
Rio Tinto financial information by business unit | Rio Tinto financial information by business unit Gross product sales (a) Underlying EBITDA (b) Underlying earnings (c) for the 6 months ended for the 6 months ended for the 6 months ended Adjusted Adjusted Adjusted Rio Tinto 30 June 2021 30 June 2020 30 June 2021 30 June 2020 30 June 2021 30 June 2020 US$m US$m US$m US$m US$m US$m Iron Ore Pilbara (d) 21,476 11,246 16,207 7,702 10,348 4,628 Dampier Salt 68.4 145 112 21 25 5 8 Evaluation projects/other (e) 1,003 252 161 (37) 110 (77) Intra-segment (e) (917) (145) (329) 8 (247) 4 Total Iron Ore 21,707 11,465 16,060 7,698 10,216 4,563 Aluminium Bauxite 1,082 1,170 338 514 105 257 Alumina 1,359 1,096 295 115 155 38 Primary Metal 3,193 2,111 1,101 284 564 (59) Pacific Aluminium 1,285 965 273 5 174 (50) Intra-segment and other (1,391) (1,262) (36) 33 (40) 24 Integrated operations 5,528 4,080 1,971 951 958 210 Other product group Items 404 407 17 3 12 (3) Product group operations 5,932 4,487 1,988 954 970 207 Evaluation projects/other — — (64) (29) (49) (14) Total Aluminium 5,932 4,487 1,924 925 921 193 Copper Rio Tinto Kennecott 100.0 1,318 635 676 193 323 (12) Escondida 30.0 1,486 941 1,033 564 537 204 Oyu Tolgoi and Turquoise Hill (f) 844 409 528 89 152 11 Product group operations 3,648 1,985 2,237 846 1,012 203 Simandou iron ore project (g) — — (6) (2) (2) (1) Evaluation projects/other 131 (2) (183) (158) (125) (91) Total Copper 3,779 1,983 2,048 686 885 111 Minerals Iron Ore Company of Canada 58.7 1,807 1,086 1,105 473 398 156 Rio Tinto Iron & Titanium (h) 973 773 305 222 146 80 Rio Tinto Borates 100.0 300 293 64 83 34 47 Diamonds (i) 160 141 16 (12) 5 (40) Product group operations 3,240 2,293 1,490 766 583 243 Evaluation projects/other 30 29 (92) (54) (85) (53) Total Minerals 3,270 2,322 1,398 712 498 190 Other operations (j) 85 158 (4) 1 (51) (29) Inter-segment transactions (145) (82) (6) (18) (3) (6) Product group total 34,628 20,333 21,420 10,004 12,466 5,022 Central pensions, share-based payments, insurance and derivatives 119 102 120 97 Restructuring, project and one-off costs (36) (72) (23) (53) Central costs (k) (346) (273) (294) (233) Central exploration and evaluation (120) (121) (100) (97) Net interest (3) 14 Underlying EBITDA/earnings 21,037 9,640 12,166 4,750 Items excluded from underlying EBITDA/earnings (177) (119) 147 (1,434) Reconciliation to Group income statement Share of equity accounted unit sales and intra-subsidiary/equity accounted unit sales (1,545) (971) Impairment charges — (1,163) Depreciation and amortisation in subsidiaries excluding capitalised depreciation (2,253) (1,974) Depreciation and amortisation in equity accounted units (249) (314) Taxation and finance items in equity accounted units (365) (141) Finance items 56 (650) Consolidated sales revenue/profit before taxation/net earnings 33,083 19,362 18,049 5,279 12,313 3,316 Rio Tinto financial information by business unit (continued) Capital expenditure (l) Depreciation and amortisation Operating assets (m) for the 6 months ended for the 6 months ended As at Adjusted Adjusted Adjusted Rio Tinto 30 June 2021 30 June 2020 30 June 2021 30 June 2020 30 June 2021 31 December 2020 US$m US$m US$m US$m US$m US$m Iron Ore Pilbara (d) 1,907 1,179 1,011 831 16,558 16,253 Dampier Salt 68.4 5 6 11 9 169 163 Evaluation projects/other (e) — — — — 833 338 Intra-segment (e) — — — — (351) (104) Total Iron Ore 1,912 1,185 1,022 840 17,209 16,650 Aluminium Bauxite 67 53 165 139 2,551 2,593 Alumina 113 74 80 59 2,116 2,294 Primary Metal 285 303 347 325 9,506 9,361 Pacific Aluminium 58 54 53 71 409 455 Intra-segment and other 1 (2) — — 875 662 Total Aluminium 524 482 645 594 15,457 15,365 Copper Rio Tinto Kennecott 100.0 203 320 249 223 2,282 2,317 Escondida 30.0 83 118 174 239 2,663 2,726 Oyu Tolgoi and Turquoise Hill (f) 460 548 98 104 8,854 8,111 Product group operations 746 986 521 566 13,799 13,154 Simandou iron ore project (g) — (2) — — 19 16 Evaluation projects/other 4 3 2 2 154 192 Total Copper 750 987 523 568 13,972 13,362 Minerals Iron Ore Company of Canada 58.7 90 51 96 88 1,052 1,009 Rio Tinto Iron & Titanium (h) 83 60 109 95 3,538 3,390 Rio Tinto Borates 100.0 17 16 25 25 487 502 Diamonds (i) 11 20 2 58 191 (7) Product group operations 201 147 232 266 5,268 4,894 Evaluation projects/other 8 — — — 37 33 Total Minerals 209 147 232 266 5,305 4,927 Other operations (j) — 1 92 99 (848) (550) Inter-segment transactions (36) 129 Product group total 3,395 2,802 2,514 2,367 51,059 49,883 Other items 35 22 42 39 (1,224) (2,165) Less: equity accounted units (120) (159) (249) (314) — — Total 3,310 2,665 2,307 2,092 49,835 47,718 Add back: Proceeds from disposal of property, plant and equipment 26 28 Total capital expenditure per cash flow statement 3,336 2,693 Less: Net cash/(debt) 3,140 (664) Equity attributable to owners of Rio Tinto 52,975 47,054 |
Notes to financial information
Notes to financial information by business unit | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of operating segments [abstract] | |
Notes to financial information by business unit | Notes to financial information by business unit Business units are classified according to the Group’s management structure. The financial information by business unit has been recast in accordance with the organisational restructure announced on 28 January 2021.The main impacts are as follows: Simandou has moved from the previous Energy & Minerals product group to the Copper product group; Uranium has moved from the previous Energy & Minerals product group to Other Operations; Diamonds has moved from the previous Copper & Diamonds product group to the Minerals product group; the Minerals product group retains the Argyle Residual operations and from 1 January 2021, Argyle Closure has moved to Other Operations. Argyle Residual operations includes activity relating to the sale of remaining diamond inventory and property held. Argyle Closure includes activity relating to the management and execution of the Argyle mine closure obligations and management of entities with interests in state and traditional owner agreements and licences. As a result of these changes, the Copper & Diamonds segment is renamed Copper and the Energy & Minerals segment is renamed Minerals from 2021. The disclosures in this note include certain Alternative performance measures (APMs). For more information on the APMs used by the Group, including definitions and calculations, please refer to pages 26 to 31. (a) Gross product sales includes the sales revenue of equity accounted units on a proportionately consolidated basis (after adjusting for sales to subsidiaries) in addition to consolidated sales. Consolidated sales revenue includes subsidiary sales to equity accounted units which are not included in gross product sales. (b) Underlying EBITDA of subsidiaries and the Group’s share relating to equity accounted units represents profit before: tax, net finance items, depreciation and amortisation charged to the income statement in the period. Underlying EBITDA excludes the EBITDA impact of the same items that are excluded from underlying earnings. (c) Underlying earnings represent net earnings attributable to the owners of Rio Tinto, adjusted to exclude items which do not reflect the underlying performance of the Group’s operations. Business unit earnings are stated before finance items but after the amortisation of discount related to provisions. Earnings attributed to business units do not include amounts that are excluded in arriving at underlying earnings. (d) Pilbara represents the Group’s 100% holding in Hamersley, 50% holding of Hope Downs Joint Venture and 65% holding of Robe River Iron Associates. The Group’s net beneficial interest in Robe River Iron Associates is 53% as 30% is held through a 60% owned subsidiary and 35% is held through a 100% owned subsidiary. (e) Gross product sales, Underlying EBITDA, Net Earnings and Operating assets within Evaluation projects/other include activities relating to the shipment and blending of Pilbara and Iron Ore Company of Canada (IOC) iron ore inventories held at portside in China and sold to domestic customers. Transactions between the Pilbara and our portside trading business are eliminated through the Iron Ore "intra-segment" line and transactions between IOC and the portside trading business are eliminated through "inter-segment transactions". (f) Our interest in Oyu Tolgoi is held indirectly through our 50.8% investment in Turquoise Hill Resources Ltd (TRQ), where TRQ’s principal asset is its 66% investment in Oyu Tolgoi LLC, which owns the Oyu Tolgoi copper-gold mine. (g) Simfer Jersey Limited, a company incorporated in Jersey in which the Group has a 53% interest, has an 85% interest in Simfer S.A., the company that manages the Simandou mining project in Guinea. The Group therefore has a 45.05% indirect interest in Simfer S.A. These entities are consolidated as subsidiaries and together referred to as the Simandou iron ore project. (h) Includes our interests in Rio Tinto Fer et Titane (100%), QIT Madagascar Minerals (QMM, 80%) and Richards Bay Minerals (attributable interest of 74%). (i) Includes our interests in Argyle (100%), mainly the Argyle Residual Operations which relates to the sale of remaining inventory and Diavik (60%). From 1 June 2021, management responsibility for the Argyle site moved from Minerals to Rio Tinto Closure (RTC), hence, Argyle Closure is reported in Other operations effective from 1 January 2021. Refer to (j) below. (j) Other operations include our 100% interest in the Gove alumina refinery (under rehabilitation), Rio Tinto Marine, and the remaining legacy liabilities of Rio Tinto Coal Australia. These include provisions for onerous contracts, in relation to rail infrastructure capacity, partly offset by financial assets and receivables relating to contingent royalties and disposal proceeds. From 1 January 2021, Uranium moved from Minerals to Other operations. From 1 January 2021, Argyle Closure is reported as part of Other Operations. Notes to financial information by business unit (continued) (k) Mark-to-market movements on commodity derivatives entered into with the commercial objective of achieving spot pricing for the underlying transaction at the date of settlement have been reclassified from Central costs and are now included in Central pensions, share based payments, insurance & derivatives, in order to provide a better understanding of Central costs. The impact of this change on the reported comparatives is insignificant, and therefore the comparatives have not been restated. (l) Capital expenditure is the net cash outflow on purchases less sales of property, plant and equipment, capitalised evaluation costs and purchases less sales of other intangible assets. The details provided include 100% of subsidiaries’ capital expenditure and Rio Tinto’s share of the capital expenditure of joint operations and equity accounted units. (m) Operating assets of the Group comprise equity attributable to Rio Tinto before deducting net cash/(debt). Operating assets of business units are comprised of net assets excluding post-retirement assets and liabilities, net of tax, and before deducting net debt. Operating assets are stated after the deduction of non-controlling interests - these are calculated by reference to the net assets of the relevant companies (i.e. inclusive of such companies’ debt and amounts due to or from Rio Tinto Group companies). |
Basis of preparation
Basis of preparation | 6 Months Ended |
Jun. 30, 2021 | |
Basis Of Presentation [Abstract] | |
Basis of preparation | Basis of preparation The unaudited condensed consolidated interim financial statements included in this interim report have been prepared in accordance with: International Accounting Standard ('IAS') 34 'Interim financial reporting' as issued by the International Accounting Standards Boards (IASB) and adopted by the European Union ('EU') before 1 January 2021 and as adopted for use in the United Kingdom ('UK') thereafter under the European Union (Withdrawal) Act 2018; the Disclosure Guidance and Transparency Rules sourcebook ('DTR') of the Financial Conduct Authority ('FCA') applicable to interim financial reporting; and an Order under section 340 of the Australian Corporations Act 2001 issued by the Australian Securities and Investments Commission on 1 6 July 2021 . These unaudited condensed consolidated interim financial statements represent a ‘condensed set of financial statements’ as referred to in the DTR issued by the FCA. Accordingly, they do not include all of the information required for a full annual financial report and are to be read in conjunction with the Group’s annual financial statements for the year ended 31 December 2020 and any public announcements made by the Group during the interim reporting period. Accounting policies The unaudited condensed consolidated interim financial statements have been drawn up on the basis of accounting policies, methods of computation and presentation consistent with those applied in the financial statements for the year ended 31 December 2020, and in the corresponding interim period, except for the modifications set out below. This basis of accounting is referred to as ‘IFRS’ in this repo rt. Adoption of changes to IFRS applicable in 2021 did not have a significant impact on the Group's financial statements. During the six months to 30 June 2021, the Group did not early adopt any amendments, standards or interpretations that have been issued but are not yet mandatory. The Group adopted Interest Rate Benchmark Reform - Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) at 1 January 2021. The amendments address the financial reporting impact from reform of the London Interbank Offered Rate (LI BOR) and other benchmark interest rates (collectively “IBOR reform”). Financial authorities have asked market participants to complete the transition to alternative Risk Free Rates (RFR). On 5 March 2021 LIBOR's administrator, ICE Benchmarks Administration (IBA) and its supervisor, the UK Financial Conduct Authority (FCA), issued statements which provide the dates that all LIBOR settings will either cease to be provided by any administrator or will no longer be representative. This will occur: immediately after 31 December 2021, for all GBP, Euro, CHF and JPY LIBOR settings, and for 1-week and 2-month USD LIBOR settings; and immediately after 30 June 2023, for the remaining USD LIBOR settings. The Group will take relevant Phase 2 practical reliefs from certain requirements in IFRS 9, IFRS 7, IFRS 4 and IFRS 16 relating to changes in the basis for determining contractual cash flows of financial assets, financial liabilities and hedge accounting. Our hedging arrangements impacted by the reform of US LIBOR are part of the International Swaps and Derivatives Association ("ISDA") Fallbacks Protocol, which provides a global standardised mechanism for replacement of the current benchmark. At 30 June 2021, the Group has interest rate risk exposure including US$7.3 billion nominal values of fixed-rate borrowings swapped to US dollar rates in fair value hedge relationships. We expect application of the Phase 2 reliefs to result in continuation of the Group’s pre-existing hedge accounting upon amendment of designated arrangements in response to the replacement of IBOR with new benchmarks. In addition, the Group has a number of arrangements which reference IBOR benchmarks and extend beyond 2021. These include third-party borrowings relating to the Oyu Tolgoi LLC project finance facility and other secured loans, a number of intragroup balances and certain commercial contracts. Other arrangements which currently reference IBOR benchmarks include accessible revolving lines of credit, and shareholder loan facilities. As a result of the Phase 2 relief the Group expects that no material gain or loss will arise from these updates. Principal accounting policies Principal accounting policy information has also been expanded to reflect changes in 2021 to the following policy: Financial instruments - Derivatives and hedge accounting - refer to note 1(q)(iv) to the 2020 Annual Report: The Group adopted Interest rate benchmark reform - Phase 1 (Amendments to IFRS 9, IAS 39, and IFRS 7) during the year ended 31 December 2019, and adopted Interest Rate Benchmark Reform - Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) from 1 January 2021. Phase 1 amendments allow temporary relief from applying specific hedge accounting requirements to hedging arrangements directly impacted by IBOR reform. Application of the temporary reliefs mean that IBOR reform does not result in termination of hedging relationships referencing an IBOR during the period of IBOR-related uncertainty. Phase 2 amendments allow relief from certain requirements in IFRS 9, IFRS 7, IFRS 4 and IFRS 16 relating to changes in the basis for determining contractual cash flows of financial assets, financial liabilities and hedge accounting. The principal Phase 1 relief which the Group has applied to its hedging portfolio is in the assumption that US LIBOR remains a separately identifiable component for the duration of the hedge; and the US LIBOR rates referenced by fixed-to-floating rate swaps in fair value hedge relationships do not change as the result of IBOR reform, preserving the economic relationship and allowing the related hedges to remain effective. This temporary relief ceases, on a hedge-by-hedge basis, when the designated hedge relationship is amended and application of Phase 2 reliefs begins, which will be by 30 June 2023. As a result of the Phase 2 reliefs the Group expects that no material gain or loss will arise from the IBOR reform. International financial reporting standards mandatory beyond 2021 The Group disclosed information relatin g to standards and pronouncements mandatory beyond 2021 in the financial statements for the year ended 31 December 2020, Amendments to IAS 16 Property, Plant and Equipment: Proceeds before Intended Use and IAS 37 Provisions, Contingent Liabilities and Contingent Assets: Cost of Fulfilling a Contract are mandatory in 2022. Amendments to IAS 12 Income Taxes – Deferred Tax related to Assets and Liabilities arising from a Single Transaction and IFRS 17 Insurance Contracts are mandatory in 2023. Amendments to IAS 1 Presentation of financial statements: classification of liabilities is now unlikely to be mandatory any earlier than 2024. Work is underway to identify arrangements affected by adoption of these amendments and the new insurance standard and to quantify corresponding adjustments to retained earnings and restatement of previously reported amounts where applicable. Initial stages of the impact assessment have been completed, comprising internal research and consultation. We are presently undertaking detailed review and ongoing monitoring of arrangements, transactions and contracts identified as potentially impacted by these changes to IFRS. Our approach assumes that UK endorsement will result in mandatory application on a timeframe equivalent to that under IFRS and AIFRS. The Group does not propose the early adoption of any of these pronouncements. Amendments to IAS 16 Property, Plant and Equipment: Proceeds before Intended Use (mandatory in 2022 and not yet endorsed by the UK) prohibit the deduction, from the cost of major project construction work in progress, of proceeds (net of additional processing costs) from selling items before the related item of property, plant and equipment is available for use. Under the amendment such proceeds are recognised in profit and loss together with the costs of producing those items. The amendments will result in higher reported revenue, operating costs, inventory and property plant and equipment balances (capital works in progress) relating to major development projects completed after 1 January 2020. IAS 2 Inventories will apply to the measurement of pre-production inventory and identifying the related cost may require significant estimation and judgment in the selection of an appropriate method for allocating development expenditure to such inventory. Adjustments to Group retained earnings at 1 January 2020, and restatement of the 2020 Group Income Statement and Balance Sheet upon adoption of the amendments in 2022 in respect of such projects are not expected to be material. We continue to monitor the progress of major projects under development in 2021 for relevant pre-production revenue and associated cost. Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets: Cost of Fulfilling a Contract (mandatory in 2022 and not yet endorsed by the UK) specify which costs an entity includes in determining the cost of fulfilling a contract for the purpose of assessing whether the contract is onerous. Under the amendment the cost of fulfilling a contract comprises all directly related costs, comprising both incremental amounts and an allocation of other directly related expenditure. The Group currently makes provision for onerous contracts when the assets dedicated to the contract are fully impaired or the contract becomes stranded as a result of a business decision (refer to note 1(i) on page 215 of the 2020 Annual Report). From 2022, the Group will record a provision if a contract is found to be loss-making on a stand-alone basis following allocation of all directly related costs as required by the amendments to IAS 37. As required by the amendment's transition arrangements, the Group will apply the amendments in its 2022 Financial Statements without restatement, with an adjustment to retained earnings at 1 January 2022 if required. Our impact assessment has confirmed that no adjustments in respect of the amendments will be needed to arrangements for which an onerous contract provision has already been recorded. No further arrangements have been identified to date which would be treated as onerous contracts under the revised guidance on cost of fulfilling a contract; this assessment may change if key input assumptions for contract valuation move significantly. In particular, the Group has approximately 2.1 million tonnes per annum of short- and long-term legacy alumina sales contracts which are exposed to a fixed linkage to the LME Aluminium price, with about 30% of volume commitments expiring by the end of 2023. Opportunity loss relating to these sales contracts does not indicate that they are onerous, and we estimate that a reduction of 10% in the LME Aluminium index would, other factors remaining unchanged, not result in a material adjustment at 1 January 2022. Other input price variables in alumina production, including cost of bauxite production and procurement of caustic and energy, could also have an impact on whether an adjustment to recognise an onerous contract provision is required. More information on these alumina sales contracts is provided on page 48 of the 2020 Annual Report. Other than these contracts, our impact assessment has not, to date, identified any arrangements potentially giving rise to significant onerous contract provisions under the revised cost of fulfilment approach. International financial reporting standards mandatory beyond 2021 (continued) This assessment reflects our current expectations as to how to apply the amendments to IAS 37. Practical application of the amendments continues to develop, and the Group continues to monitor this. IAS 12 Income Taxes - Deferred Tax related to Assets and Liabilities arising from a Single Transaction, mandatory in 2023 and not yet endorsed by the UK. Narrow-scope amendments to IAS 12 introduce an exception to the initial recognition exemption for transactions that give rise to equal taxable and deductible temporary differences. The most significant impact from implementing these amendments is expected to be from temporary differences related to the Group's provisions for close-down and restoration / environmental and lease obligations and corresponding capitalised closure costs and right-of-use assets. Our existing accounting policy states that “where the recognition of an asset and liability from a single transaction gives rise to equal and off-setting temporary differences, Rio Tinto applies the Initial Recognition Exemption allowed by IAS 12, and consequently recognises neither a deferred tax asset nor a deferred tax liability in respect of these temporary differences.” Under the amendment, deferred tax assets and liabilities will be required to be recognised in respect of such temporary differences. Upon transition in 2023, the Group anticipates material adjustments (prior to required offsetting within the same tax jurisdiction) as at 1 January 2021 to deferred tax assets and deferred tax liabilities with the net difference recorded in reserves. Work is ongoing to quantify the impact, including appropriate offsets against existing deferred tax liabilities or assets in various jurisdictions. There will be no impact on tax cash flows or balance sheet tax recoverable or payable as a result of implementing these amendments and the unwind of the newly recognised deferred tax is not expected to materially impact annual profits and losses. IFRS 17 Insurance Contracts (mandatory in 2023 and not yet endorsed by the UK) provides consistent principles for all aspects of accounting for insurance contracts. The Group continues to evaluate the impacts of this pronouncement. The effective date for amendments to IAS 1 Presentation of financial statements: classification of liabilities has been tentatively deferred to no earlier than 1 January 2024 and is not yet endorsed by the UK. This amendment sets out specific guidance for determining the classification of liabilities as current or non-current, based on whether an entity has a substantive right to payment deferral at the reporting date. The Group continues to evaluate the impact of this amendment. COVID-19 impact As announced in our second quarter Operations Review on 16 July 2021, we continue to prioritise the safety of our employees, contractors, their families and the communities where we operate. During the six months to 30 June 2021 there has been a resurgence of the virus, including second and third waves in regions where we have assets and offices including Mongolia, India, the Americas and South Africa, and we have continued to implement a range of preventive measures to keep our people safe, in accordance with government guidance. As a company, we also benefited from our host governments recognising mining as an essential business, and allowing us to continue operating. This meant people remained employed, suppliers had our business, and taxes and royalties continued to be paid. Ongoing travel restrictions and tight labour markets add further pressure on the business and limit our ability to access additional people, particularly in Western Australia, Canada, and the asset locations most affected by virus resurgence, referred to above. However, there has been no material adverse impact to our operations and associated financial results year-to-date as a result of COVID-19. At our Oyu Tolgoi operations, shipments have been affected by Chinese border restrictions due to increased cases of COVID-19 in Mongolia. We continue to work closely with authorities and our customers to manage the risk of supply chain disrupt ions. The potential impact of COVID-19 over the next the 12 months remains uncertain, and a risk we continue to closely monitor and proactively manage. Potential impacts may include: • changes in the market resulting in lower demand and/or commodity prices. • impact on shipments in response to market demand or in response to government directives restricting the movement of goods (e.g. Chinese border restrictions due to COVID-19 cases in Mongolia impacting shipments from Oyu Tolgoi). • additional costs associated with preventative, monitoring and management measures introduced across our operations. • labour shortages and restrictions on the movement of people and goods may inhibit our ability to progress some of our projects at planned pace. Recognising the broad and complex impacts of the pandemic on our markets, operations and financial performance, we have chosen not to segregate COVID-19 related costs from our underlying performance metrics. Full details of initiatives taken to date can be found on our website. However, the contents of the Rio Tinto website are not part of these condensed consolidated interim financial statements. |
Impairment charges
Impairment charges | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of impairment loss and reversal of impairment loss [abstract] | |
Impairment charges | Impairment charges Six months ended Six months ended Pre-tax Pre-tax US$m US$m Aluminium – Pacific Aluminium — (489) Aluminium - ISAL — (204) Minerals – Diavik — (441) Total impairment charge — (1,134) Allocated as: Intangible assets — (4) Property, plant and equipment — (1,011) Investment in equity accounted units ('EAUs') — (119) Total impairment charge — (1,134) Comprising: Impairment charges of consolidated balances — (1,015) Impairment charges related to EAUs (pre-tax) — (148) Total impairment charge — (1,163) Taxation (including related to EAUs) — 130 Total impairment in the income statement — (1,033) 2021 There were no impairment charges or reversals during the six months ended 30 June 2021. 2020 Aluminium - Pacific Aluminium, Australia and New Zealand On 9 July 2020, we announced the conclusion of the NZAS strategic review and gave Meridian Energy 14 months' notice for the termination of the power contract. As a result of the decision to wind-down operations an impairment trigger was identified. The net present value of post-tax cash flows over the remaining life for this cash-generating unit was negative and therefore the non-current assets of the smelter were fully impaired. The high operating costs and challenging outlook for the aluminium industry also resulted in impairment triggers being identified at the Bell Bay aluminium smelter in Tasmania, Australia and at Boyne Smelter in Queensland, Australia. Bell Bay has a power contract to 2025 with Hydro Tasmania and with the current market context the forecast net present value of cash flows over that period was negative. The property, plant and equipment of the Bell Bay smelter was fully impaired. The recoverable amount for our share of the Boyne Smelter cash-generating unit which also included the Gladstone Power Station was determined as US$273 million based on post-tax cash flows expressed in real-terms and discounted at 6.6%. Accordingly our share of impairment after tax in the equity accounted unit was US$119 million ( US$148 million pre-tax) related to the smelter and US$26 million ( US$36 million pre-tax) related to the power station. Impairment charges (continued) Aluminium - ISAL Smelter, Iceland In February 2020 we announced a strategic review of the ISAL smelter in Iceland and the challenging market conditions were identified as an impairment trigger. The net present value of cash flows projected over the remaining life for this CGU did not support retaining any carrying value for the non-current assets of the CGU, which were fully impaired following a pre-tax impairment charge of US$204 million in the first half of 2020. During subsequent negotiations Landsvirkjun tabled an improved offer for power delivery, restoring the competitiveness of the smelter over its remaining life. At 31 December 2020, we concluded these updated circumstances, represented an indicator of partial impairment reversal. When combined with improved pricing since 30 June 2020 we calculated a post-tax recoverable amount for the CGU of US$139 million based on the IAS 36 fair value less cost of disposal (FVLCD) methodology, discounted using a post-tax discount rate of 6.6% expressed in real terms and recorded a pre-tax impairment reversal of US$111 million. As a consequence, the full year results for the year ended 31 December 2020 included a net pre-tax impairment charge of US$93 million. Minerals (previously under Copper & Diamonds) - Diavik, Canada The COVID-19 pandemic significantly disrupted the global demand for diamonds with many countries restricting the movement of citizens and closing retail outlets. Our 40% joint venture partner at the Diavik diamond mine filed for creditor protection in April 2020 and defaulted on its cash calls. Together these circumstances were identified as an impairment trigger. The net present value of post-tax cash flows projected over the remaining life of the Diavik diamond mine to 2025 did not support retaining any carrying value for the property, plant and equipment and intangible assets of the cash generating unit, which were fully impaired. |
Prima facie tax reconciliation
Prima facie tax reconciliation | 6 Months Ended |
Jun. 30, 2021 | |
Major components of tax expense (income) [abstract] | |
Prima facie tax reconciliation | Prima facie tax reconciliation Six months ended Six months ended US$m US$m Profit before taxation 18,049 5,279 Deduct: share of profit after tax of equity accounted units (a) (556) (198) Add back: impairment of investments in equity accounted units (a) — 119 Parent companies' and subsidiaries' profit before tax 17,493 5,200 Prima facie tax payable at UK rate of 19% (2020: 19%) 3,324 988 Higher rate of taxation on Australian underlying earnings 1,609 707 Impact of items excluded in arriving at underlying earnings (b) : – Impairment charges (c) — 92 – Exchange and gains/losses on derivatives (34) 18 – Losses from increases to closure estimates (non-operating and fully impaired sites) (9) (21) Other tax rates applicable outside the UK and Australia on underlying earnings 77 (79) Amounts under/(over) provided in prior years 43 (6) Recognition of previously unrecognised deferred tax assets (d) (77) — Write-down of previously recognised deferred tax assets 8 12 Other items 40 117 Total taxation charge (a) 4,981 1,828 (a) This tax reconciliation relates to the Group's parent companies, subsidiaries and joint operations, and excludes equity accounted units. The Group's share of profit of equity accounted units is net of tax charges of US$318 million (30 June 2020: US$111 million). In 2020, impairments of investments in equity accounted units were net of tax credits of US$29 million. (b) The impact for each item includes the effect of tax rates applicable outside the UK. (c) In 2020, the tax impact of impairments included the write down of deferred tax assets at ISAL and NZAS and non-recognition of deferred tax on those impairments. The tax impact also included recognition at local tax rates of deferred tax assets arising on the impairments of Bell Bay, Gladstone Power Station and Diavik. Refer to the Impairment charges note on pages F-13 and F-14. (d) The recognition of previously unrecognised deferred tax assets relates to the recognition of prior year deferred tax assets on losses and on impaired assets at Oyu Tolgoi due to improved deferred tax asset recovery expectations. |
Consolidated net (debt)_cash
Consolidated net (debt)/cash | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Consolidated Net Debt [Abstract] | |
Consolidated net (debt)/cash | Consolidated net (debt)/cash Financing liabilities Other assets Borrowings excluding overdrafts (a) Lease Liabilities (b) Debt-related derivatives (included in Other financial liabilities/assets) (c) Cash and cash equivalents (d) Other Investments (e) Net (debt)/cash For the six months ended 30 June 2021 US$m US$m US$m US$m US$m US$m Analysis of changes in consolidated net (debt)/cash Opening balance (12,653) (1,178) 248 10,381 2,538 (664) Foreign exchange adjustment 5 1 (3) (21) — (18) Cash movements excluding exchange movements 120 170 (1) 3,663 (15) 3,937 Other non-cash movements (b) 125 (94) (133) — (13) (115) Closing balance (12,403) (1,101) 111 14,023 2,510 3,140 (a) Borrowings excluding overdrafts (including lease liabilities) of US$13,504 million at 30 June 2021 (31 December 2020: US$13,831 million) differ from total borrowings and other financial liabilities of US$13,914 million (31 December 2020: US$14,015 million) on the balance sheet as they exclude overdrafts of US$4 million (31 December 2020: US$nil), other current financial liabilities of US$150 million (31 December 2020: US$23 million) and other non-current financial liabilities of US$256 million (31 December 2020: US$161 million). (b) Other non-cash movements in lease liabilities include the net impact of additions, modifications and terminations during the period. (c) Included within "Debt-related derivatives" are interest rate and cross currency interest rate swaps that are in hedge relationships with the Group's debt. (d) At 30 June 2021, we held US$1,800 million (31 December 2020: US$1,200 million) of reverse repurchase agreements, measured at amortised cost and reported within cash and cash equivalents as they are highly liquid products maturing within three months. (e) Other investments comprise US$2,510 million (31 December 2020: US$2,538 million) of highly liquid financial assets held in managed investment funds classified as held for trading. |
Provisions and post-retirement
Provisions and post-retirement benefits | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of other provisions [abstract] | |
Provisions and post-retirement benefits | Provisions and post-retirement benefits Pensions and post-retirement healthcare (a) Other employee entitlements (b) Close-down and restoration/ environmental (c) Other Total For the six months ended 30 June 2021 US$m US$m US$m US$m US$m Opening balance 3,055 419 13,335 856 17,665 Adjustment on currency translation 41 (10) (133) (7) (109) Adjustments to mining properties/right of use assets: – changes in estimate — — 21 3 24 Charged/(credited) to profit: – increases to existing and new provisions 82 60 265 95 502 – decreases to existing provisions and — (10) (2) (12) (24) – exchange losses on provisions — — 7 — 7 – amortisation of discount — — 206 1 207 Utilised in the period (76) (63) (231) (55) (425) Actuarial gains recognised in equity (616) — — — (616) Transfers and other movements (a) (291) — (1) (29) (321) Closing balance 2,195 396 13,467 852 16,910 Balance sheet analysis: Current 71 306 917 540 1,834 Non-current 2,124 90 12,550 312 15,076 Total 2,195 396 13,467 852 16,910 (a) During the period ended 30 June 2021 , the Group entered into an agreement to transfer its partially funded pension obligations in France to an external insurer. The insurance premium was paid by the transfer of the existing pension assets valued at US$89 million plus an additional cash payment of €247 million ( US$294 million ), of which US$3 million was taken to the income statement. The Group has no further legal or constructive obligation relating to the insured pensions and has reflected this transaction as a settlement. (b) The provision for other employee entitlements includes a provision for long service leave of US$275 million (31 December 2020: US$283 million), based on the relevant entitlements in certain Group operations and includes US$52 million (31 December 2020: US$62 million) of provision for redundancy and severance payments. (c) Close-down and restoration/environmental liabilities at 30 June 2021 have not been adjusted for closure related receivables amounting to US$595 million (31 December 2020: US$574 million) due from the ERA trust fund, the co-owners of the Diavik Joint Venture and other financial assets held for the purposes of meeting closure obligations. These are included within “Receivables and other assets” in the balance sheet. |
Financial instruments disclosur
Financial instruments disclosures | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of detailed information about financial instruments [abstract] | |
Financial instruments disclosures | Financial instruments disclosures Except where stated, the information given below relates to the financial instruments of the parent companies and their subsidiaries and joint operations, and excludes those of equity accounted units. Fair values disclosure of financial instruments The following table shows the carrying amounts and fair values of our borrowings including those which are not carried at an amount which approximates their fair value at 30 June 2021 and 31 December 2020. The fair values of our cash equivalents, loans to equity accounted units and other financial liabilities approximate their carrying values because of their short maturity, or because they carry floating rates of interest. 30 June 2021 31 December 2020 Carrying Fair Carrying Fair Borrowings 12,405 14,558 12,653 15,076 Total borrowings with a carrying value of US$7.4 billion (31 December 2020: US$7.6 billion) relate to listed bonds. These have a fair value of US$9.0 billion (31 December 2020: US$9.5 billion) and are categorised as level 1 in the fair value hierarchy. Borrowings with a carrying value of US$4.2 billion (31 December 2020: US$4.2 billion) relate to project finance drawn down by Oyu Tolgoi, with a fair value of US$4.7 billion (31 December 2020: US$4.7 billion) and are categorised as level 3 in the fair value hierarchy. We use different valuation inputs for the pre-and post-completion phases to reflect Rio Tinto’s completion support guarantee during the pre-completion phase. To measure the fair value of the project finance pre-completion our valuation input includes market yield over the pre-completion period, the variability of which we consider a reasonable indicator of fair value movements on amounts outstanding under the project finance facility. Post-completion, we estimate the fair value with reference to the annual interest rate on each tranche of the facility, and after considering factors that could indicate a change in the credit assessment of Oyu Tolgoi LLC as a counterparty to project finance. These factors include in-country risk relating to the Oyu Tolgoi project, and the assumed date of transition from pre-completion to post-completion. These valuation inputs are considered to be level 3. Transition from pre-completion to post-completion is determined by a set of tests for both completion of physical infrastructure and the ability to extract and process ore of defined grades over a defined period. Our remaining borrowings have a fair value measured by discounting estimated cash flows with an applicable market quoted yield and are categorised as level 2 in the fair value hierarchy. Debt maturity Dur ing the six months to 30 June 2021, we have not entered into any new interest rate swaps. During 2020, we entered into US$1.5 billion of interest rate swaps to convert the remaining fixed Alcan debt to floating interest rates. This is in accordance with our floating interest rate policy. We have put these swaps into fair value hedge relationships with the respective tranches of debt. The main sources of ineffectiveness of the fair value hedges include changes in the timing of the cash flows of the hedging instrument compared to the underlying hedged item, and changes in the credit risk of parties to the hedging relationships. The changes in fair value of the bonds and the swaps as well as the ineffectiveness recorded in the income statement is not material to the Group. The fair value of interest rate and cross currency interest rate swaps at 30 June 2021 was US$273 million ( 31 December 2020 : US$388 million ) asset and US$162 million ( 31 December 2020 : US$140 million ) liability, respectively. These are included within “Other financial assets” and “Other financial liabilities” in t he balance sheet. Financial instruments disclosures (continued) The effective interest rate of our borrowings, impacted by swaps, are summarised below. All nominal values are fully hedged unless otherwise stated: Borrowings in a hedge relationship Nominal value Weighted average interest rate after swaps Swap maturity Carrying Value at 30 June 2021 Carrying Value at 31 December 2020 US$m Year US$m US$m Rio Tinto Finance plc Euro Bonds 2.875% due 2024 546 3 month LIBOR +1.64% 2024 530 555 Rio Tinto Finance (USA) Limited Bonds 3.75% 2025 1,200 3 month LIBOR +1.39% 2025 1,268 1,299 Rio Tinto Finance (USA) Limited Bonds 7.125% 2028 750 3 month LIBOR +3.27% 2028 960 1,005 Alcan Inc. Debentures 7.25% due 2028 100 3 month LIBOR +5.43% 2024 107 109 Rio Tinto Finance plc Sterling Bonds 4.0% due 2029 807 3 month LIBOR +2.65% 2024 713 717 Alcan Inc. US$400m Debentures 7.25% due 2031 (a) 400 3 month LIBOR +5.72% 2025 427 438 Alcan Inc. US$750m Global Notes 6.125% due 2033 (a) 750 3 month LIBOR +5.67% 2025 732 744 Alcan Inc. US$300m Global Notes 5.75% due 2035 (a) 300 3 month LIBOR +5.18% 2025 287 292 Rio Tinto Finance (USA) Limited Bonds 5.2% 2040 1,150 3 month LIBOR +3.79% 2022 1,168 1,173 Rio Tinto Finance (USA) plc Bonds 4.75% 2042 500 3 month LIBOR +3.42% 2023 500 501 Rio Tinto Finance (USA) plc Bonds 4.125% 2042 750 3 month LIBOR +2.83% 2023 742 743 (a) In 2020 we entered into new swaps to convert the interest payable in relation to these bonds from fixed to floating rates. Valuation hierarchy of financial instruments carried at fair value on a recurring basis The table below shows the financial instruments carried at fair value by valuation method in accordance with IFRS 9 at 30 June 2021 : Held at fair value At 30 June 2021 Total Level 1 (a) US$m Level 2 (b) US$m Level 3 (c) US$m Held at amortised cost Assets Cash and cash equivalents (d) 14,027 7,198 — — 6,829 Investments in equity shares and funds 113 67 — 46 — Other investments, including loans and pooled funds (e) 2,955 2,531 — 240 184 Trade and other financial receivables (f) 3,794 2 2,122 — 1,670 Derivatives (net) Forward contracts and option contracts: designated as hedges (g) (118) — — (118) — Forward contracts and option contracts, not designated as hedges (g) 133 — 54 79 — Derivatives related to net debt (h) 111 — 111 — — Liabilities Trade and other financial payables (5,767) — (167) — (5,600) Total 15,248 9,798 2,120 247 3,083 Financial instruments disclosures (continued) Held at fair value At 31 December 2020 Total Level 1 (a) US$m Level 2 (b) US$m Level 3 (c) US$m Held at amortised cost Assets Cash and cash equivalents (d) 10,381 6,411 — — 3,970 Investments in equity shares and funds 75 35 — 40 — Other investments, including loans and pooled funds (e) 2,899 2,563 — 198 138 Trade and other financial receivables (f) 3,286 5 1,802 — 1,479 Derivatives (net) Forward contracts and option contracts: designated as hedges (g) 53 — 7 46 — Forward contracts and option contracts, not designated as hedges (g) 180 — 69 111 — Derivatives related to net debt (h) 248 — 248 — — Liabilities Trade and other financial payables (5,847) — (30) — (5,817) Total 11,275 9,014 2,096 395 (230) (a) Valuation is based on unadjusted quoted prices in active markets for identical financial instruments. (b) Valuation is based on inputs that are observable for the financial instruments; which include quoted prices for similar instruments or identical instruments in markets which are not considered to be active, or inputs, either directly or indirectly based on observable market data. (c) Valuation is based on inputs for the asset or liability that are not based on observable market data (unobservable inputs). (d) Cash and cash equivalents include money market funds which are treated as fair value through profit or loss (‘FVPL’) under IFRS 9 with the fair value movements going into finance income. (e) Other investments, including loans and pooled funds, comprise: cash deposits in rehabilitation funds, government bonds, managed investment funds and royalties. The royalties receivable are valued based on expected mine production as well as forward commodity prices. (f) Trade receivables include provisionally priced invoices. The related revenue is initially based on forward market selling prices for the quotation periods stipulated in the contracts with changes between the provisional price and the final price are recorded separately within 'Other revenue'. The selling price can be measured reliably for the Group's products, as it operates in active and freely traded commodity markets. At 30 June 2021, US$1,940 million (31 December 2020: US$1,671 million) of provisionally priced receivables were recognised. (g) Level 3 derivatives mainly consist of derivatives embedded in electricity purchase contracts linked to the LME with terms expiring betwee n 2025 and 2036 (31 December 2020: 2025 and 2029). The embedded derivatives are measured using discounted cash flows and option model valuation techniques. (h) Interest rate and currency interest rate swaps are valued using applicable market quoted swap yield curves adjusted for relevant basis and credit default spreads. Currency interest rate swap valuations also use market quoted foreign exchange rates. A discounted cash flow approach is used to derive fair value from these inputs to the underlying cash flows. Financial instruments disclosures (continued) Level 3 Financial instruments The table below shows the summary of changes in the fair value of the Group's Level 3 financial assets and financial liabilities for the six months to 30 June 2021. Level 3 Financial assets and liabilities US$m Opening balance 395 Currency translation adjustments (3) Total realised gains/(losses) included in: – consolidated sales revenue 15 – net operating costs (18) Total unrealised gains included in: – net operating costs 33 Total unrealised gains transferred into other comprehensive income (172) Disposals/maturity of financial instruments (3) Closing balance 247 Net gains included in the income statement for assets and liabilities held at period end 26 Sensitivity analysis in respect of level 3 financial instruments Forward contracts and options whose fair value is determined using unobservable inputs are calculated using appropriate discounted cash flow and option model valuation techniques. To value the aluminium embedded derivatives, we use unobservable inputs when the term of the derivative extends beyond observable market prices. In 2021 and 2020, changing the level 3 inputs to reasonably possible alternative assumptions does not change the fair value significantly, taking into account the expected remaining term of contracts. The fair value of the aluminium embedded derivatives are US$92 million in a net liability position at 30 June 2021 (31 December 2020: US$126 million in a net asset position). We also have royalty receivables, with a carrying value of US$155 million (31 December 2020: US$113 million), arising from the sale of our coal assets in prior periods. These are classified as 'Other investments, including loans' within 'Other financial assets'. The fair values are determined using level 3 unobservable inputs. This receivable includes US$56 million that relates to royalties from thermal coal production beyond 2030 and has not been adjusted for potential changes in production rates that could occur due to climate change targets. The main unobservable input is the long-term coal price used over the life of the royalty receivable. A 15% increase in the coal spot price would result in a US$149 million increase (31 December 2020: US$198 million increase) in the carrying value. A 15% decrease in the coal spot price would result in a US$41 million decrease (31 December 2020: US$46 million decrease) in the carrying value. We have used a 15% assumption to calculate our exposure as it represents the annual coal price movement that we deem to be reasonably probable (on an annual basis over the long run). |
Segmental information
Segmental information | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of operating segments [abstract] | |
Segmental information | Segmental information The Group's reportable segments are based on principal product groups and are consistent with the internal reporting structure as at 30 June 2021. Business units (BUs) are allocated to PGs based on management structure. The reportable segments are described as follows: Reportable segment Principal activities Iron Ore Iron ore mining and salt and gypsum production in Western Australia. Aluminium Bauxite mining; alumina refining; aluminium smelting. Copper Mining and refining of copper, gold, silver, molybdenum and other by-products; exploration activities together with the Simandou iron ore project, which is the responsibility of Copper product group chief executive. Minerals Includes businesses with products such as borates, titanium dioxide feedstock together with the Iron Ore Company of Canada (iron ore mining and iron concentrate/pellet production). Also includes diamond mining, sorting and marketing. The financial information by business unit has been recast in accordance with the organisational restructure announced on 28 January 2021.The main impacts are as follows: Simandou has moved from the previous Energy & Minerals product group to the Copper product group; Uranium has moved from the previous Energy & Minerals product group to Other Operations; Diamonds has moved from the previous Copper & Diamonds product group to the Minerals product group; the Minerals product group retains the Argyle Residual operations and from 1 January 2021, Argyle Closure has moved to Other Operations. Argyle Residual operations includes activity relating to the sale of remaining diamond inventory and property held. Argyle Closure includes activity relating to the management and execution of the Argyle mine closure obligations and management of entities with interests in state and traditional owner agreements and licences. As a result of these changes, the Copper & Diamonds segment is renamed Copper and the Energy & Minerals segment is renamed Minerals from 2021. Six months ended 30 June 2021 Gross product sales (b) US$m Underlying EBITDA (c) US$m Underlying earnings (d) US$m Capital expenditure (e) US$m Depreciation and amortisation (f) US$m Iron Ore 21,707 16,060 10,216 1,912 1,022 Aluminium 5,932 1,924 921 524 645 Copper 3,779 2,048 885 750 523 Minerals 3,270 1,398 498 209 232 Reportable segments total 34,688 21,430 12,520 3,395 2,422 Other Operations 85 (4) (51) — 92 Inter-segment transactions (145) (6) (3) — — Product group total 34,628 21,420 12,466 3,395 2,514 Other items — — — 35 42 Share of equity accounted units (a) (1,545) — — (120) (249) Proceeds from disposal of property, plant and equipment — — 26 — Central pensions, share-based payments, insurance and derivatives 119 120 — — Restructuring, project and one-off costs (36) (23) — — Central costs (346) (294) — — Central exploration and evaluation (120) (100) — — Net interest — (3) — — Consolidated sales revenue/Capital expenditure/Depreciation and amortisation (g) 33,083 3,336 2,307 Underlying EBITDA/Underlying earnings 21,037 12,166 Segmental information (continued) Six months ended 30 June 2020 Gross product sales (b) US$m Underlying EBITDA (c) US$m Underlying earnings (d) US$m Capital expenditure (e) US$m Depreciation and amortisation (f) US$m Iron Ore 11,465 7,698 4,563 1,185 840 Aluminium 4,487 925 193 482 594 Copper (Adjusted) 1,983 686 111 987 568 Minerals (Adjusted) 2,322 712 190 147 266 Reportable segments total 20,257 10,021 5,057 2,801 2,268 Other Operations (Adjusted) 158 1 (29) 1 99 Inter-segment transactions (82) (18) (6) — — Product group total 20,333 10,004 5,022 2,802 2,367 Other items — — — 22 39 Share of equity accounted units (a) (971) — — (159) (314) Proceeds from disposal of property, plant and equipment — — 28 — Central pensions, share-based payments, insurance and derivatives 102 97 — — Restructuring, project and one-off costs (72) (53) — — Central costs (273) (233) — — Central exploration and evaluation (121) (97) — — Net interest — 14 — — Consolidated sales revenue/Capital expenditure/Depreciation and amortisation (g) 19,362 2,693 2,092 Underlying EBITDA/Underlying earnings 9,640 4,750 (a) For Gross product sales - share of equity accounted units also includes adjustments for intra-subsidiary/equity accounted units sales. (b) Gross product sales includes the Group’s proportionate share of product sales by equity accounted units (after adjusting for sales to subsidiaries) of US$1,567 million (30 June 2020: US$986 million) which are not included in consolidated sales revenue. Consolidated sales revenue includes subsidiary sales of US$22 million (30 June 2020: US$15 million) to equity accounted units which are not included in gross product sales. (c) Underlying EBITDA represents profit before tax, net finance items, depreciation and amortisation excluding the EBITDA impact of the same items that are excluded in arriving at underlying earnings (as defined below). The reconciliation of underlying EBITDA to profit before taxation can be found on page F-24. (d) Underlying earnings represent net earnings attributable to the owners of Rio Tinto, adjusted to exclude items which do not reflect the underlying performance of the Group’s operations. Exclusions from underlying earnings are those gains and losses that individually, or in aggregate with similar items, are of a nature or size to require exclusion in order to provide additional insight into underlying business performance. The following items are excluded from net earnings in arriving at underlying earnings in each period irrespective of the magnitude: – Net gains/(losses) on disposal and consolidation of interests in businesses. – Impairment charges and reversals. – Profit/(loss) after tax from discontinued operations. – Certain exchange and derivative gains and losses. – The reconciliation of underlying earnings to net earnings can be found on pages F-24 and F-25. (e) Capital expenditure for reportable segments comprises the net cash outflow on purchases less disposals of property, plant and equipment, capitalised evaluation costs and purchases less disposals of other intangible assets. The details provided include 100% of subsidiaries’ capital expenditure and Rio Tinto’s share of the capital expenditure of joint operations and equity accounted units. Segmental information (continued) (f) Product group depreciation and amortisation for reportable segments include 100% of subsidiaries’ depreciation and amortisation and Rio Tinto’s share of the depreciation and amortisation of equity accounted units. Rio Tinto’s share of the depreciation and amortisation charge of equity accounted units is deducted to arrive at depreciation and amortisation as shown in the cash flow statement. These figures do not include impairment charges and reversals, which are excluded from underlying earnings. (g) Capital expenditure and Depreciation and amortisation as reported in the cash flow statement. Reconciliation of underlying EBITDA to profit before taxation Six months ended Six months ended US$m US$m Underlying EBITDA 21,037 9,640 (Losses)/gains on embedded commodity derivatives not qualifying for hedge accounting (including exchange) (2) 53 Change in closure estimates (non-operating and fully impaired sites) (175) (172) Depreciation and amortisation in subsidiaries and equity accounted units (a) (2,502) (2,288) Impairment charges — (1,163) Taxation and finance items in equity accounted units (365) (141) Finance items 56 (650) Profit before taxation 18,049 5,279 (a) Depreciation and amortisation in subsidiaries and equity accounted units for the period ended 30 June 2021 is net of capitalised depreciation of US$54 million (30 June 2020: US$118 million). Reconciliation of underlying earnings to net earnings Underlying earnings are reported by Rio Tinto to provide greater understanding of the underlying business performance of its operations. Underlying earnings and net earnings both represent amounts attributable to owners of Rio Tinto. Exclusions from underlying earnings relating to equity accounted units are stated after tax and included in the column ‘Pre-tax’. Items (a) to (e) below are excluded from net earnings in arriving at underlying earnings. Pre-tax US$m Taxation US$m Non- controlling interests US$m Net amount for six months ended 30 June 2021 US$m Net amount for six months ended 30 June 2020 US$m Underlying earnings 17,918 (4,999) (753) 12,166 4,750 Items excluded from underlying earnings: Impairment charges (a) — — — — (1,033) Exchange and derivative gains/(losses): - Exchange gains/(losses) on net debt and intragroup balances (b) 374 (34) 7 347 (149) - Losses on currency and interest rate derivatives not qualifying for hedge accounting (c) (52) 10 (3) (45) (167) - (Losses)/gains on embedded commodity derivatives not qualifying for hedge accounting (d) (16) — (6) (22) 33 Net losses from movements to closure estimates (non-operating and fully impaired sites) (e) (175) 42 — (133) (118) Total excluded from underlying earnings 131 18 (2) 147 (1,434) Net earnings 18,049 (4,981) (755) 12,313 3,316 (a) Refer to Impairment charges note on pages F-13 and F-14. (b) Exchange gains/(losses) on external net debt and intragroup balances for the period ended 30 June 20 21 comprise of post-tax foreign exchange losses on net debt of US$4 million and post-tax gains of US$351 million on intragroup balances, primarily as a result of the Australian dollar weakening against the US dollar and the Canadian dollar strengthening against the US dollar. Segmental information (continued) Exchange (losses)/gains on external net debt and intragroup balances for the period ended 30 June 2020 comprise post-tax foreign exchange losses on net debt of US$170 million and post-tax gains of US$21 million on intragroup balances, primarily as a result of the Australi an and Canadian dollars both weakening against the US dollar. (c) Valuation changes on currency and interest rate derivatives, which are ineligible for hedge accounting, other than those embedded in commercial contracts, and the currency revaluation of embedded US dollar derivatives contained in contracts held by entities whose functional currency is not the US dollar. (d) Valuation changes on derivatives, embedded in commercial contracts, that are ineligible for hedge accounting, but for which there will be an offsetting change in future Group earnings. (e) In 2021, this amount includes an increase in Diavik's closure provision to reflect the completion of the Pre-Feasibility Study that was in progress when the asset was fully impaired in 2020. As the assets at Diavik had previously been fully impaired this increase has been recognised through the income statement and has been excluded from underlying earnings in line with past practice when impairments have been recorded based on provisional closure estimates. The 2021 charge also includes closure provision increases at some of the Group's legacy sites where the environmental damage preceded ownership by Rio Tinto. Segmental information - additional information Geographical analysis (by destination) Consolidated sales revenue by destination (a) Six months ended 30 June 2021 Six months ended 30 June 2020 Six months ended 30 June 2021 Six months ended 30 June 2020 % % US$m US$m China 59.9 % 54.9 % 19,805 10,633 Asia (excluding China and Japan) 9.5 % 11.1 % 3,157 2,155 United States of America 11.5 % 12.4 % 3,816 2,392 Japan 7.2 % 8.3 % 2,373 1,598 Europe (excluding UK) 5.0 % 5.9 % 1,667 1,143 Canada 2.4 % 2.9 % 793 585 Australia 1.6 % 1.8 % 519 351 UK 0.5 % 0.6 % 166 112 Other countries 2.4 % 2.1 % 787 393 Consolidated sales revenue 100.0 % 100.0 % 33,083 19,362 (a) Consolidated sales revenue by geographical destination is based on the ultimate country of destination of the product, if known. If the eventual destination of the product sold through traders is not known then revenue is allocated to the location of the product at the time when control is transferred. Rio Tinto is domiciled in both the UK and Australia. Product analysis (by revenue type) Six months ended 30 June 2021 Six months ended 30 June 2020 Consolidated sales revenue by product Revenue from contracts with customers Other revenue (a) US$m Consolidated sales revenue Revenue from contracts with customers US$m Other revenue (a) US$m Consolidated sales revenue Iron ore 21,964 1,108 23,072 12,182 82 12,264 Aluminium, Alumina and Bauxite 5,733 84 5,817 4,454 (19) 4,435 Copper 1,472 77 1,549 642 (9) 633 Industrial minerals 1,141 4 1,145 991 (7) 984 Gold 506 (6) 500 214 4 218 Diamonds 160 — 160 141 — 141 Other products (b) 827 13 840 692 (5) 687 Consolidated sales revenue 31,803 1,280 33,083 19,316 46 19,362 Share of equity accounted unit sales and intra-subsidiary/equity accounted unit sales 1,545 971 Gross product sales 34,628 20,333 (a) Certain of the Group’s products may be provisionally priced at the date revenue is recognised based on forward rates. The subsequent changes in value of provisionally priced receivables through to settlement is classified as ‘Other revenue’ above. (b) "Other products" includes metallic co-products, molybdenum, silver and other commodities. This category also now includes uranium sales of US$76 million (30 June 2020: US$149 million) that were previously disclosed separately. |
Other disclosures
Other disclosures | 6 Months Ended |
Jun. 30, 2021 | |
Other Disclosures [Abstract] | |
Other disclosures | Other disclosures Capital commitments at 30 June 2021 Capital commitments, excluding the Group’s share of joint venture capital commitments, were US$3,059 million (31 December 2020: US$3,152 million). Our capital commitments include open purchase orders for managed operations and expenditure on major projects authorised by our Investment Committee for non-managed operations. On a legally enforceable basis, capital commitments would be approximately US$1.7 billion (31 December 2020: US$1.5 billion) as many of the contracts relating to the Group’s projects have various cancellation clauses. The Group’s share of joint venture capital commitments was US$9 million (31 December 2020: US$9 million). Contingent liabilities (subsidiaries and joint operations) Contingent liabilities, indemnities and other performance guarantees were US$140 million at 30 June 2021 (31 December 2020: US$146 million). Performance guarantees Indemnities and other performance guarantees represent the potential outflow of funds from the Group for the satisfaction of obligations including those under contractual arrangements (for example undertakings related to supplier agreements) not provided for in the balance sheet, where the likelihood of the guarantees or indemnities being called is assessed as possible rather than probable or remote. There were no material contingent liabilities arising in relation to the Group’s joint ventures and associates. Rio Tinto Coal Mozambique In October 2017, Rio Tinto announced that it had been notified by the U.S. Securities and Exchange Commission (SEC) that the SEC had filed a complaint in relation to Rio Tinto’s disclosures and timing of the impairment of Rio Tinto Coal Mozambique (RTCM). The impairment was reflected in Rio Tinto’s 2012 year-end accounts. The SEC alleges that Rio Tinto, a former chief executive, Tom Albanese, and a former chief financial officer, Guy Elliott, committed violations of the antifraud, reporting, books and records and internal control provisions of the federal securities law by not accurately disclosing the value of RTCM and not impairing it when Rio Tinto published its 2011 year-end accounts in February 2012 or its 2012 interim results in August 2012. In June 2019, the trial court dismissed an associated US class action on behalf of securities holders. In August 2020, the appeals court partially overturned the court’s dismissal and the case is with the trial court for further consideration. In March 2018, the Australian Securities and Investments Commission (ASIC) filed civil proceedings in the NSW District Registry of the Federal Court of Australia against Rio Tinto Limited, Albanese, and Elliott. On 1 May 2018, ASIC expanded its proceedings. ASIC alleges that Rio Tinto committed violations of the disclosure, accounting, and misleading or deceptive conduct provisions of the Corporations Act by making misleading or deceptive statements related to RTCM in its 2011 Annual Report and its 2012 interim financial statements, not complying with accounting standards in respect of its 2012 interim financial statements, and not disclosing an impairment of RTCM in its 2012 interim financial statements. ASIC further alleges Albanese and Elliott breached their duties as directors or officers, and failed to take all reasonable steps to comply with relevant accounting requirements. Rio Tinto believes that the SEC case and the ASIC proceedings are unwarranted and will defend the allegations vigorously. Hence, no provisions have been recognised for these cases. Simandou Rio Tinto continues to co-operate fully with relevant authorities in connection with their investigations in relation to contractual payments totalling US$10.5 million made to a consultant who had provided advisory services in 2011 on the Simandou project in Guinea. In August 2018, the court dismissed a related US class action commenced on behalf of securities holders. No provision has been recognised for this case. The outcomes of these matters remain uncertain, but they could ultimately expose the Group to material financial cost. The Board is giving these matters its full and proper attention and a dedicated Board committee continues to monitor the progress of these matters, as appropriate. Other disclosures (continued) Other legal matters The Group has not established provisions for certain additional legal claims in cases where we have assessed that a payment is either not probable or cannot be reliably estimated. A number of Group companies are, and will likely continue to be, subject to various legal proceedings and investigations that arise from time to time. As a result, the Group may become subject to substantial liabilities that could affect our business, financial position and reputation. Litigation is inherently unpredictable and large judgements may at times occur. The Group may incur, in the future, judgements or enter into settlements of claims that could lead to material cash outflows. However, at present, we do not believe that any of these proceedings will have a materially adverse effect on our financial position. Related party matters Transactions and balances with equity accounted units are summarised below. Purchases, trade and other receivables, and trade and other payables relate largely to amounts charged by equity accounted units for toll processing of alumina and purchasing of bauxite and aluminium. Sales relate largely to sales of alumina to equity accounted units for smelting into aluminium. Details of the Group's principal equity accounted units are given in the 2020 Annual report. Income statement items Six months ended Six months ended US$m US$m Purchases from equity accounted units (543) (519) Sales to equity accounted units 205 119 Cash flow statement items Dividends from equity accounted units 726 183 Net receipts/(funding) from/of equity accounted units 28 (14) Balance sheet items US$m US$m Investments in equity accounted units (a) 3,660 3,764 Loans to equity accounted units — 41 Trade and other receivables: amounts due from equity accounted units (b) 246 251 Trade and other payables: amounts due to equity accounted units (240) (241) (a) Investments in equity accounted units include quasi equity loans. (b) This includes prepayments of tolling charges. Rio Tinto plc has provided a number of guarantees in relation to various pension funds. Subject to certain conditions, Rio Tinto plc would pay any contributions due from Group companies participating in these funds in the event that the companies fail to meet their contribution requirements. Summary financial information for subsidiaries that have non-controlling interests that are material to the Group This summarised financial information is shown on a 100% basis. It represents the amounts shown in the subsidiaries’ financial statements prepared in accordance with IFRS under Group accounting policies, including fair value adjustments, and before intercompany eliminations Iron Ore Iron Ore Turquoise Hill (a)(b)(c) Turquoise Hill (a)(b)(c) 2021 2020 2021 2020 Income statement summary for six months ended 30 June US$m US$m US$m US$m Revenue 1,718 1,011 844 409 Profit/(loss) after tax 654 257 426 (23) – attributable to non-controlling interests 271 106 211 (89) – attributable to Rio Tinto 383 151 215 66 Other comprehensive income/(loss) 96 (91) 5 (2) Total comprehensive income/(loss) 750 166 431 (25) 30 June 31 December 30 June 31 December Balance sheet summary as at: US$m US$m US$m US$m Non-current assets 2,879 2,733 11,789 10,930 Current assets 840 670 1,033 1,496 Current liabilities (493) (462) (530) (540) Non-current liabilities (1,034) (993) (4,392) (4,404) Net assets 2,192 1,948 7,900 7,482 – attributable to non-controlling interests 907 804 2,600 2,424 – attributable to Rio Tinto 1,285 1,144 5,300 5,058 2021 2020 2021 2020 Cash flow statement summary for six months ended 30 June US$m US$m US$m US$m Cash flow from operations 964 403 95 29 Dividends paid to non-controlling interests (206) — — — (a) Turquoise Hill Resources Ltd holds a controlling interest in Oyu Tolgoi LLC ("OT"). (b) Under the terms of the project finance facility held by OT, there are certain restrictions on the ability of OT to make shareholder distributions. (c) Since 2011, Turquoise Hill has funded common share investments in OT on behalf of Erdenes Oyu Tolgoi LLC ("Erdenes"). In accordance with the Amended and Restated Shareholders Agreement dated 8 June 2011, such funded amounts earn interest at an effective annual rate of LIBOR plus 6.5% and are repayable to them via a pledge over Erdenes' share of future OT common share dividends. Erdenes also has the right to reduce the outstanding balance by making payments directly to Turquoise Hill. Common share investments funded on behalf of Erdenes are recorded as a reduction to the net carrying value of non-controlling interests. As at 30 June 2021, the cumulative amount of such funding was US$1,399 million (31 December 2020: US$1,378 million), excluding accrued interest of US$877 million (31 December 2020: US$804 million) relating to this funding. Other disclosures (continued) Summary financial information for subsidiaries that have non-controlling interests that are material to the Group (continued) Robe River Robe River Other companies and eliminations (d) Other companies and eliminations (d) Robe River Robe River 2021 2020 2021 2020 2021 2020 Income statement summary for six months ended 30 June US$m US$m US$m US$m US$m US$m Revenue 1,289 734 1,504 851 2,793 1,585 Profit after tax 752 403 841 424 1,593 827 – attributable to non-controlling interests 301 158 — — 301 158 – attributable to Rio Tinto 451 245 841 424 1,292 669 Other comprehensive loss (80) (88) (37) (38) (117) (126) Total comprehensive income 672 315 804 386 1,476 701 30 June 31 December 30 June 31 December 30 June 31 December Balance sheet summary as at: US$m US$m US$m US$m US$m US$m Non-current assets 3,535 3,452 4,238 4,247 7,773 7,699 Current assets 1,134 865 1,870 2,239 3,004 3,104 Current liabilities (583) (380) (339) (414) (922) (794) Non-current liabilities (424) (255) (4,234) (4,752) (4,658) (5,007) Net assets 3,662 3,682 1,535 1,320 5,197 5,002 – attributable to non-controlling interests 1,463 1,397 — — 1,463 1,397 – attributable to Rio Tinto 2,199 2,285 1,535 1,320 3,734 3,605 2021 2020 2021 2020 2021 2020 Cash flow statement summary for six months ended 30 June US$m US$m US$m US$m US$m US$m Cash flow from operations 1,134 665 1,643 1,066 2,777 1,731 Dividends paid to non-controlling interests (201) (211) — — (201) (211) (d) "Other companies and eliminations" includes North Mining Limited (a wholly-owned subsidiary of the Group which accounts for its interest in Robe River) and goodwill of US$375 million at 30 June 2021 (31 December 2020: US$383 million) that arose on the Group's acquisition of its interest in Robe River. Other disclosures (continued) Summary information for joint ventures that are material to the Group This summarised financial information is shown on a 100% basis. It represents the amounts shown in the joint ventures’ financial statements prepared in accordance with IFRS under Group accounting policies, including fair value adjustments and amounts due to and from Rio Tinto. Minera Escondida Ltda (a) Minera Escondida Ltda (a) Sohar Aluminum Co. L.L.C. (b) Sohar Aluminum Co. L.L.C. (b) 2021 2020 2021 2020 Income statement summary for six months ended 30 June US$m US$m US$m US$m Revenue 4,953 3,137 420 325 Depreciation and amortisation (580) (797) (60) (55) Other operating costs (1,506) (1,243) (245) (225) Operating profit 2,867 1,097 115 45 Finance expense (73) (70) (10) (15) Income tax (1,034) (370) (15) (5) Profit after tax 1,760 657 90 25 Other comprehensive income/(loss) 40 (27) — — Total comprehensive income 1,800 630 90 25 30 June 31 December 30 June 31 December Balance sheet summary as at: US$m US$m US$m US$m Non-current assets 11,710 11,833 1,805 1,850 Current assets 3,010 3,107 420 270 Current liabilities (1,777) (1,813) (150) (675) Non-current liabilities (4,796) (4,560) (745) (200) Net assets 8,147 8,567 1,330 1,245 Assets and liabilities above include: – cash and cash equivalents 887 1,103 145 30 – current financial liabilities (577) (790) (55) (565) – non-current financial liabilities (2,800) (2,560) (575) (30) 2021 2020 2021 2020 Cash flow statement summary for six months ended 30 June US$m US$m US$m US$m Dividends received from joint venture (Rio Tinto share) 720 183 — — (a) In addition to its “Investment in equity accounted units”, the Group recognises deferred tax liabilities of US$334 million (31 December 2020: US$358 million) relating to tax that would be payable if the Group's share of the earnings retained in Minera Escondida Ltda were remitted to the Group. (b) Under covenants stipulated in the agreement to Sohar Aluminium Co. L.L.C.'s secured loan facilities, there are certain restrictions on the ability of Sohar Aluminium Co. L.L.C to make shareholder distributions. |
Events after the balance sheet
Events after the balance sheet date | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
Events after the balance sheet date | Events after the balance sheet date There were no significant events identified after the balance sheet date. |
Rio Tinto financial informati_2
Rio Tinto financial information by business unit (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of operating segments [abstract] | |
Disclosure of financial information by business unit | Gross product sales (a) Underlying EBITDA (b) Underlying earnings (c) for the 6 months ended for the 6 months ended for the 6 months ended Adjusted Adjusted Adjusted Rio Tinto 30 June 2021 30 June 2020 30 June 2021 30 June 2020 30 June 2021 30 June 2020 US$m US$m US$m US$m US$m US$m Iron Ore Pilbara (d) 21,476 11,246 16,207 7,702 10,348 4,628 Dampier Salt 68.4 145 112 21 25 5 8 Evaluation projects/other (e) 1,003 252 161 (37) 110 (77) Intra-segment (e) (917) (145) (329) 8 (247) 4 Total Iron Ore 21,707 11,465 16,060 7,698 10,216 4,563 Aluminium Bauxite 1,082 1,170 338 514 105 257 Alumina 1,359 1,096 295 115 155 38 Primary Metal 3,193 2,111 1,101 284 564 (59) Pacific Aluminium 1,285 965 273 5 174 (50) Intra-segment and other (1,391) (1,262) (36) 33 (40) 24 Integrated operations 5,528 4,080 1,971 951 958 210 Other product group Items 404 407 17 3 12 (3) Product group operations 5,932 4,487 1,988 954 970 207 Evaluation projects/other — — (64) (29) (49) (14) Total Aluminium 5,932 4,487 1,924 925 921 193 Copper Rio Tinto Kennecott 100.0 1,318 635 676 193 323 (12) Escondida 30.0 1,486 941 1,033 564 537 204 Oyu Tolgoi and Turquoise Hill (f) 844 409 528 89 152 11 Product group operations 3,648 1,985 2,237 846 1,012 203 Simandou iron ore project (g) — — (6) (2) (2) (1) Evaluation projects/other 131 (2) (183) (158) (125) (91) Total Copper 3,779 1,983 2,048 686 885 111 Minerals Iron Ore Company of Canada 58.7 1,807 1,086 1,105 473 398 156 Rio Tinto Iron & Titanium (h) 973 773 305 222 146 80 Rio Tinto Borates 100.0 300 293 64 83 34 47 Diamonds (i) 160 141 16 (12) 5 (40) Product group operations 3,240 2,293 1,490 766 583 243 Evaluation projects/other 30 29 (92) (54) (85) (53) Total Minerals 3,270 2,322 1,398 712 498 190 Other operations (j) 85 158 (4) 1 (51) (29) Inter-segment transactions (145) (82) (6) (18) (3) (6) Product group total 34,628 20,333 21,420 10,004 12,466 5,022 Central pensions, share-based payments, insurance and derivatives 119 102 120 97 Restructuring, project and one-off costs (36) (72) (23) (53) Central costs (k) (346) (273) (294) (233) Central exploration and evaluation (120) (121) (100) (97) Net interest (3) 14 Underlying EBITDA/earnings 21,037 9,640 12,166 4,750 Items excluded from underlying EBITDA/earnings (177) (119) 147 (1,434) Reconciliation to Group income statement Share of equity accounted unit sales and intra-subsidiary/equity accounted unit sales (1,545) (971) Impairment charges — (1,163) Depreciation and amortisation in subsidiaries excluding capitalised depreciation (2,253) (1,974) Depreciation and amortisation in equity accounted units (249) (314) Taxation and finance items in equity accounted units (365) (141) Finance items 56 (650) Consolidated sales revenue/profit before taxation/net earnings 33,083 19,362 18,049 5,279 12,313 3,316 Rio Tinto financial information by business unit (continued) Capital expenditure (l) Depreciation and amortisation Operating assets (m) for the 6 months ended for the 6 months ended As at Adjusted Adjusted Adjusted Rio Tinto 30 June 2021 30 June 2020 30 June 2021 30 June 2020 30 June 2021 31 December 2020 US$m US$m US$m US$m US$m US$m Iron Ore Pilbara (d) 1,907 1,179 1,011 831 16,558 16,253 Dampier Salt 68.4 5 6 11 9 169 163 Evaluation projects/other (e) — — — — 833 338 Intra-segment (e) — — — — (351) (104) Total Iron Ore 1,912 1,185 1,022 840 17,209 16,650 Aluminium Bauxite 67 53 165 139 2,551 2,593 Alumina 113 74 80 59 2,116 2,294 Primary Metal 285 303 347 325 9,506 9,361 Pacific Aluminium 58 54 53 71 409 455 Intra-segment and other 1 (2) — — 875 662 Total Aluminium 524 482 645 594 15,457 15,365 Copper Rio Tinto Kennecott 100.0 203 320 249 223 2,282 2,317 Escondida 30.0 83 118 174 239 2,663 2,726 Oyu Tolgoi and Turquoise Hill (f) 460 548 98 104 8,854 8,111 Product group operations 746 986 521 566 13,799 13,154 Simandou iron ore project (g) — (2) — — 19 16 Evaluation projects/other 4 3 2 2 154 192 Total Copper 750 987 523 568 13,972 13,362 Minerals Iron Ore Company of Canada 58.7 90 51 96 88 1,052 1,009 Rio Tinto Iron & Titanium (h) 83 60 109 95 3,538 3,390 Rio Tinto Borates 100.0 17 16 25 25 487 502 Diamonds (i) 11 20 2 58 191 (7) Product group operations 201 147 232 266 5,268 4,894 Evaluation projects/other 8 — — — 37 33 Total Minerals 209 147 232 266 5,305 4,927 Other operations (j) — 1 92 99 (848) (550) Inter-segment transactions (36) 129 Product group total 3,395 2,802 2,514 2,367 51,059 49,883 Other items 35 22 42 39 (1,224) (2,165) Less: equity accounted units (120) (159) (249) (314) — — Total 3,310 2,665 2,307 2,092 49,835 47,718 Add back: Proceeds from disposal of property, plant and equipment 26 28 Total capital expenditure per cash flow statement 3,336 2,693 Less: Net cash/(debt) 3,140 (664) Equity attributable to owners of Rio Tinto 52,975 47,054 |
Impairment charges - (Tables)
Impairment charges - (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of impairment loss and reversal of impairment loss [abstract] | |
Summary of impairment charges | Six months ended Six months ended Pre-tax Pre-tax US$m US$m Aluminium – Pacific Aluminium — (489) Aluminium - ISAL — (204) Minerals – Diavik — (441) Total impairment charge — (1,134) Allocated as: Intangible assets — (4) Property, plant and equipment — (1,011) Investment in equity accounted units ('EAUs') — (119) Total impairment charge — (1,134) Comprising: Impairment charges of consolidated balances — (1,015) Impairment charges related to EAUs (pre-tax) — (148) Total impairment charge — (1,163) Taxation (including related to EAUs) — 130 Total impairment in the income statement — (1,033) |
Prima facie tax reconciliation
Prima facie tax reconciliation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Major components of tax expense (income) [abstract] | |
Summary of prima facie tax reconciliation | Six months ended Six months ended US$m US$m Profit before taxation 18,049 5,279 Deduct: share of profit after tax of equity accounted units (a) (556) (198) Add back: impairment of investments in equity accounted units (a) — 119 Parent companies' and subsidiaries' profit before tax 17,493 5,200 Prima facie tax payable at UK rate of 19% (2020: 19%) 3,324 988 Higher rate of taxation on Australian underlying earnings 1,609 707 Impact of items excluded in arriving at underlying earnings (b) : – Impairment charges (c) — 92 – Exchange and gains/losses on derivatives (34) 18 – Losses from increases to closure estimates (non-operating and fully impaired sites) (9) (21) Other tax rates applicable outside the UK and Australia on underlying earnings 77 (79) Amounts under/(over) provided in prior years 43 (6) Recognition of previously unrecognised deferred tax assets (d) (77) — Write-down of previously recognised deferred tax assets 8 12 Other items 40 117 Total taxation charge (a) 4,981 1,828 (a) This tax reconciliation relates to the Group's parent companies, subsidiaries and joint operations, and excludes equity accounted units. The Group's share of profit of equity accounted units is net of tax charges of US$318 million (30 June 2020: US$111 million). In 2020, impairments of investments in equity accounted units were net of tax credits of US$29 million. (b) The impact for each item includes the effect of tax rates applicable outside the UK. (c) In 2020, the tax impact of impairments included the write down of deferred tax assets at ISAL and NZAS and non-recognition of deferred tax on those impairments. The tax impact also included recognition at local tax rates of deferred tax assets arising on the impairments of Bell Bay, Gladstone Power Station and Diavik. Refer to the Impairment charges note on pages F-13 and F-14. (d) The recognition of previously unrecognised deferred tax assets relates to the recognition of prior year deferred tax assets on losses and on impaired assets at Oyu Tolgoi due to improved deferred tax asset recovery expectations. |
Consolidated net (debt)_cash (T
Consolidated net (debt)/cash (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Consolidated Net Debt [Abstract] | |
Analysis of changes in consolidated net debt | Financing liabilities Other assets Borrowings excluding overdrafts (a) Lease Liabilities (b) Debt-related derivatives (included in Other financial liabilities/assets) (c) Cash and cash equivalents (d) Other Investments (e) Net (debt)/cash For the six months ended 30 June 2021 US$m US$m US$m US$m US$m US$m Analysis of changes in consolidated net (debt)/cash Opening balance (12,653) (1,178) 248 10,381 2,538 (664) Foreign exchange adjustment 5 1 (3) (21) — (18) Cash movements excluding exchange movements 120 170 (1) 3,663 (15) 3,937 Other non-cash movements (b) 125 (94) (133) — (13) (115) Closing balance (12,403) (1,101) 111 14,023 2,510 3,140 (a) Borrowings excluding overdrafts (including lease liabilities) of US$13,504 million at 30 June 2021 (31 December 2020: US$13,831 million) differ from total borrowings and other financial liabilities of US$13,914 million (31 December 2020: US$14,015 million) on the balance sheet as they exclude overdrafts of US$4 million (31 December 2020: US$nil), other current financial liabilities of US$150 million (31 December 2020: US$23 million) and other non-current financial liabilities of US$256 million (31 December 2020: US$161 million). (b) Other non-cash movements in lease liabilities include the net impact of additions, modifications and terminations during the period. (c) Included within "Debt-related derivatives" are interest rate and cross currency interest rate swaps that are in hedge relationships with the Group's debt. (d) At 30 June 2021, we held US$1,800 million (31 December 2020: US$1,200 million) of reverse repurchase agreements, measured at amortised cost and reported within cash and cash equivalents as they are highly liquid products maturing within three months. (e) Other investments comprise US$2,510 million (31 December 2020: US$2,538 million) of highly liquid financial assets held in managed investment funds classified as held for trading. |
Provisions and post-retiremen_2
Provisions and post-retirement benefits (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of other provisions [abstract] | |
Summary of Provisions including post-retirement benefits | Pensions and post-retirement healthcare (a) Other employee entitlements (b) Close-down and restoration/ environmental (c) Other Total For the six months ended 30 June 2021 US$m US$m US$m US$m US$m Opening balance 3,055 419 13,335 856 17,665 Adjustment on currency translation 41 (10) (133) (7) (109) Adjustments to mining properties/right of use assets: – changes in estimate — — 21 3 24 Charged/(credited) to profit: – increases to existing and new provisions 82 60 265 95 502 – decreases to existing provisions and — (10) (2) (12) (24) – exchange losses on provisions — — 7 — 7 – amortisation of discount — — 206 1 207 Utilised in the period (76) (63) (231) (55) (425) Actuarial gains recognised in equity (616) — — — (616) Transfers and other movements (a) (291) — (1) (29) (321) Closing balance 2,195 396 13,467 852 16,910 Balance sheet analysis: Current 71 306 917 540 1,834 Non-current 2,124 90 12,550 312 15,076 Total 2,195 396 13,467 852 16,910 (a) During the period ended 30 June 2021 , the Group entered into an agreement to transfer its partially funded pension obligations in France to an external insurer. The insurance premium was paid by the transfer of the existing pension assets valued at US$89 million plus an additional cash payment of €247 million ( US$294 million ), of which US$3 million was taken to the income statement. The Group has no further legal or constructive obligation relating to the insured pensions and has reflected this transaction as a settlement. (b) The provision for other employee entitlements includes a provision for long service leave of US$275 million (31 December 2020: US$283 million), based on the relevant entitlements in certain Group operations and includes US$52 million (31 December 2020: US$62 million) of provision for redundancy and severance payments. (c) Close-down and restoration/environmental liabilities at 30 June 2021 have not been adjusted for closure related receivables amounting to US$595 million (31 December 2020: US$574 million) due from the ERA trust fund, the co-owners of the Diavik Joint Venture and other financial assets held for the purposes of meeting closure obligations. These are included within “Receivables and other assets” in the balance sheet. |
Financial instruments disclos_2
Financial instruments disclosures (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of detailed information about financial instruments [abstract] | |
Carrying amounts and fair values | The following table shows the carrying amounts and fair values of our borrowings including those which are not carried at an amount which approximates their fair value at 30 June 2021 and 31 December 2020. The fair values of our cash equivalents, loans to equity accounted units and other financial liabilities approximate their carrying values because of their short maturity, or because they carry floating rates of interest. 30 June 2021 31 December 2020 Carrying Fair Carrying Fair Borrowings 12,405 14,558 12,653 15,076 |
Disclosure of detailed information about hedges | The effective interest rate of our borrowings, impacted by swaps, are summarised below. All nominal values are fully hedged unless otherwise stated: Borrowings in a hedge relationship Nominal value Weighted average interest rate after swaps Swap maturity Carrying Value at 30 June 2021 Carrying Value at 31 December 2020 US$m Year US$m US$m Rio Tinto Finance plc Euro Bonds 2.875% due 2024 546 3 month LIBOR +1.64% 2024 530 555 Rio Tinto Finance (USA) Limited Bonds 3.75% 2025 1,200 3 month LIBOR +1.39% 2025 1,268 1,299 Rio Tinto Finance (USA) Limited Bonds 7.125% 2028 750 3 month LIBOR +3.27% 2028 960 1,005 Alcan Inc. Debentures 7.25% due 2028 100 3 month LIBOR +5.43% 2024 107 109 Rio Tinto Finance plc Sterling Bonds 4.0% due 2029 807 3 month LIBOR +2.65% 2024 713 717 Alcan Inc. US$400m Debentures 7.25% due 2031 (a) 400 3 month LIBOR +5.72% 2025 427 438 Alcan Inc. US$750m Global Notes 6.125% due 2033 (a) 750 3 month LIBOR +5.67% 2025 732 744 Alcan Inc. US$300m Global Notes 5.75% due 2035 (a) 300 3 month LIBOR +5.18% 2025 287 292 Rio Tinto Finance (USA) Limited Bonds 5.2% 2040 1,150 3 month LIBOR +3.79% 2022 1,168 1,173 Rio Tinto Finance (USA) plc Bonds 4.75% 2042 500 3 month LIBOR +3.42% 2023 500 501 Rio Tinto Finance (USA) plc Bonds 4.125% 2042 750 3 month LIBOR +2.83% 2023 742 743 (a) In 2020 we entered into new swaps to convert the interest payable in relation to these bonds from fixed to floating rates. |
Summary of fair value of financial instruments | The table below shows the financial instruments carried at fair value by valuation method in accordance with IFRS 9 at 30 June 2021 : Held at fair value At 30 June 2021 Total Level 1 (a) US$m Level 2 (b) US$m Level 3 (c) US$m Held at amortised cost Assets Cash and cash equivalents (d) 14,027 7,198 — — 6,829 Investments in equity shares and funds 113 67 — 46 — Other investments, including loans and pooled funds (e) 2,955 2,531 — 240 184 Trade and other financial receivables (f) 3,794 2 2,122 — 1,670 Derivatives (net) Forward contracts and option contracts: designated as hedges (g) (118) — — (118) — Forward contracts and option contracts, not designated as hedges (g) 133 — 54 79 — Derivatives related to net debt (h) 111 — 111 — — Liabilities Trade and other financial payables (5,767) — (167) — (5,600) Total 15,248 9,798 2,120 247 3,083 Financial instruments disclosures (continued) Held at fair value At 31 December 2020 Total Level 1 (a) US$m Level 2 (b) US$m Level 3 (c) US$m Held at amortised cost Assets Cash and cash equivalents (d) 10,381 6,411 — — 3,970 Investments in equity shares and funds 75 35 — 40 — Other investments, including loans and pooled funds (e) 2,899 2,563 — 198 138 Trade and other financial receivables (f) 3,286 5 1,802 — 1,479 Derivatives (net) Forward contracts and option contracts: designated as hedges (g) 53 — 7 46 — Forward contracts and option contracts, not designated as hedges (g) 180 — 69 111 — Derivatives related to net debt (h) 248 — 248 — — Liabilities Trade and other financial payables (5,847) — (30) — (5,817) Total 11,275 9,014 2,096 395 (230) (a) Valuation is based on unadjusted quoted prices in active markets for identical financial instruments. (b) Valuation is based on inputs that are observable for the financial instruments; which include quoted prices for similar instruments or identical instruments in markets which are not considered to be active, or inputs, either directly or indirectly based on observable market data. (c) Valuation is based on inputs for the asset or liability that are not based on observable market data (unobservable inputs). (d) Cash and cash equivalents include money market funds which are treated as fair value through profit or loss (‘FVPL’) under IFRS 9 with the fair value movements going into finance income. (e) Other investments, including loans and pooled funds, comprise: cash deposits in rehabilitation funds, government bonds, managed investment funds and royalties. The royalties receivable are valued based on expected mine production as well as forward commodity prices. (f) Trade receivables include provisionally priced invoices. The related revenue is initially based on forward market selling prices for the quotation periods stipulated in the contracts with changes between the provisional price and the final price are recorded separately within 'Other revenue'. The selling price can be measured reliably for the Group's products, as it operates in active and freely traded commodity markets. At 30 June 2021, US$1,940 million (31 December 2020: US$1,671 million) of provisionally priced receivables were recognised. (g) Level 3 derivatives mainly consist of derivatives embedded in electricity purchase contracts linked to the LME with terms expiring betwee n 2025 and 2036 (31 December 2020: 2025 and 2029). The embedded derivatives are measured using discounted cash flows and option model valuation techniques. (h) Interest rate and currency interest rate swaps are valued using applicable market quoted swap yield curves adjusted for relevant basis and credit default spreads. Currency interest rate swap valuations also use market quoted foreign exchange rates. A discounted cash flow approach is used to derive fair value from these inputs to the underlying cash flows. |
Summary of changes in the fair value of Level 3 financial assets and financial liabilities | The table below shows the summary of changes in the fair value of the Group's Level 3 financial assets and financial liabilities for the six months to 30 June 2021. Level 3 Financial assets and liabilities US$m Opening balance 395 Currency translation adjustments (3) Total realised gains/(losses) included in: – consolidated sales revenue 15 – net operating costs (18) Total unrealised gains included in: – net operating costs 33 Total unrealised gains transferred into other comprehensive income (172) Disposals/maturity of financial instruments (3) Closing balance 247 Net gains included in the income statement for assets and liabilities held at period end 26 |
Segmental information (Tables)
Segmental information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of operating segments [abstract] | |
Summary of operating segments | Six months ended 30 June 2021 Gross product sales (b) US$m Underlying EBITDA (c) US$m Underlying earnings (d) US$m Capital expenditure (e) US$m Depreciation and amortisation (f) US$m Iron Ore 21,707 16,060 10,216 1,912 1,022 Aluminium 5,932 1,924 921 524 645 Copper 3,779 2,048 885 750 523 Minerals 3,270 1,398 498 209 232 Reportable segments total 34,688 21,430 12,520 3,395 2,422 Other Operations 85 (4) (51) — 92 Inter-segment transactions (145) (6) (3) — — Product group total 34,628 21,420 12,466 3,395 2,514 Other items — — — 35 42 Share of equity accounted units (a) (1,545) — — (120) (249) Proceeds from disposal of property, plant and equipment — — 26 — Central pensions, share-based payments, insurance and derivatives 119 120 — — Restructuring, project and one-off costs (36) (23) — — Central costs (346) (294) — — Central exploration and evaluation (120) (100) — — Net interest — (3) — — Consolidated sales revenue/Capital expenditure/Depreciation and amortisation (g) 33,083 3,336 2,307 Underlying EBITDA/Underlying earnings 21,037 12,166 Segmental information (continued) Six months ended 30 June 2020 Gross product sales (b) US$m Underlying EBITDA (c) US$m Underlying earnings (d) US$m Capital expenditure (e) US$m Depreciation and amortisation (f) US$m Iron Ore 11,465 7,698 4,563 1,185 840 Aluminium 4,487 925 193 482 594 Copper (Adjusted) 1,983 686 111 987 568 Minerals (Adjusted) 2,322 712 190 147 266 Reportable segments total 20,257 10,021 5,057 2,801 2,268 Other Operations (Adjusted) 158 1 (29) 1 99 Inter-segment transactions (82) (18) (6) — — Product group total 20,333 10,004 5,022 2,802 2,367 Other items — — — 22 39 Share of equity accounted units (a) (971) — — (159) (314) Proceeds from disposal of property, plant and equipment — — 28 — Central pensions, share-based payments, insurance and derivatives 102 97 — — Restructuring, project and one-off costs (72) (53) — — Central costs (273) (233) — — Central exploration and evaluation (121) (97) — — Net interest — 14 — — Consolidated sales revenue/Capital expenditure/Depreciation and amortisation (g) 19,362 2,693 2,092 Underlying EBITDA/Underlying earnings 9,640 4,750 (a) For Gross product sales - share of equity accounted units also includes adjustments for intra-subsidiary/equity accounted units sales. (b) Gross product sales includes the Group’s proportionate share of product sales by equity accounted units (after adjusting for sales to subsidiaries) of US$1,567 million (30 June 2020: US$986 million) which are not included in consolidated sales revenue. Consolidated sales revenue includes subsidiary sales of US$22 million (30 June 2020: US$15 million) to equity accounted units which are not included in gross product sales. (c) Underlying EBITDA represents profit before tax, net finance items, depreciation and amortisation excluding the EBITDA impact of the same items that are excluded in arriving at underlying earnings (as defined below). The reconciliation of underlying EBITDA to profit before taxation can be found on page F-24. (d) Underlying earnings represent net earnings attributable to the owners of Rio Tinto, adjusted to exclude items which do not reflect the underlying performance of the Group’s operations. Exclusions from underlying earnings are those gains and losses that individually, or in aggregate with similar items, are of a nature or size to require exclusion in order to provide additional insight into underlying business performance. The following items are excluded from net earnings in arriving at underlying earnings in each period irrespective of the magnitude: – Net gains/(losses) on disposal and consolidation of interests in businesses. – Impairment charges and reversals. – Profit/(loss) after tax from discontinued operations. – Certain exchange and derivative gains and losses. – The reconciliation of underlying earnings to net earnings can be found on pages F-24 and F-25. (e) Capital expenditure for reportable segments comprises the net cash outflow on purchases less disposals of property, plant and equipment, capitalised evaluation costs and purchases less disposals of other intangible assets. The details provided include 100% of subsidiaries’ capital expenditure and Rio Tinto’s share of the capital expenditure of joint operations and equity accounted units. Segmental information (continued) (f) Product group depreciation and amortisation for reportable segments include 100% of subsidiaries’ depreciation and amortisation and Rio Tinto’s share of the depreciation and amortisation of equity accounted units. Rio Tinto’s share of the depreciation and amortisation charge of equity accounted units is deducted to arrive at depreciation and amortisation as shown in the cash flow statement. These figures do not include impairment charges and reversals, which are excluded from underlying earnings. (g) Capital expenditure and Depreciation and amortisation as reported in the cash flow statement. Six months ended Six months ended US$m US$m Underlying EBITDA 21,037 9,640 (Losses)/gains on embedded commodity derivatives not qualifying for hedge accounting (including exchange) (2) 53 Change in closure estimates (non-operating and fully impaired sites) (175) (172) Depreciation and amortisation in subsidiaries and equity accounted units (a) (2,502) (2,288) Impairment charges — (1,163) Taxation and finance items in equity accounted units (365) (141) Finance items 56 (650) Profit before taxation 18,049 5,279 (a) Depreciation and amortisation in subsidiaries and equity accounted units for the period ended 30 June 2021 is net of capitalised depreciation of US$54 million (30 June 2020: US$118 million). Pre-tax US$m Taxation US$m Non- controlling interests US$m Net amount for six months ended 30 June 2021 US$m Net amount for six months ended 30 June 2020 US$m Underlying earnings 17,918 (4,999) (753) 12,166 4,750 Items excluded from underlying earnings: Impairment charges (a) — — — — (1,033) Exchange and derivative gains/(losses): - Exchange gains/(losses) on net debt and intragroup balances (b) 374 (34) 7 347 (149) - Losses on currency and interest rate derivatives not qualifying for hedge accounting (c) (52) 10 (3) (45) (167) - (Losses)/gains on embedded commodity derivatives not qualifying for hedge accounting (d) (16) — (6) (22) 33 Net losses from movements to closure estimates (non-operating and fully impaired sites) (e) (175) 42 — (133) (118) Total excluded from underlying earnings 131 18 (2) 147 (1,434) Net earnings 18,049 (4,981) (755) 12,313 3,316 (a) Refer to Impairment charges note on pages F-13 and F-14. (b) Exchange gains/(losses) on external net debt and intragroup balances for the period ended 30 June 20 21 comprise of post-tax foreign exchange losses on net debt of US$4 million and post-tax gains of US$351 million on intragroup balances, primarily as a result of the Australian dollar weakening against the US dollar and the Canadian dollar strengthening against the US dollar. Segmental information (continued) Exchange (losses)/gains on external net debt and intragroup balances for the period ended 30 June 2020 comprise post-tax foreign exchange losses on net debt of US$170 million and post-tax gains of US$21 million on intragroup balances, primarily as a result of the Australi an and Canadian dollars both weakening against the US dollar. (c) Valuation changes on currency and interest rate derivatives, which are ineligible for hedge accounting, other than those embedded in commercial contracts, and the currency revaluation of embedded US dollar derivatives contained in contracts held by entities whose functional currency is not the US dollar. (d) Valuation changes on derivatives, embedded in commercial contracts, that are ineligible for hedge accounting, but for which there will be an offsetting change in future Group earnings. (e) In 2021, this amount includes an increase in Diavik's closure provision to reflect the completion of the Pre-Feasibility Study that was in progress when the asset was fully impaired in 2020. As the assets at Diavik had previously been fully impaired this increase has been recognised through the income statement and has been excluded from underlying earnings in line with past practice when impairments have been recorded based on provisional closure estimates. The 2021 charge also includes closure provision increases at some of the Group's legacy sites where the environmental damage preceded ownership by Rio Tinto. |
Consolidated revenue by destination | Consolidated sales revenue by destination (a) Six months ended 30 June 2021 Six months ended 30 June 2020 Six months ended 30 June 2021 Six months ended 30 June 2020 % % US$m US$m China 59.9 % 54.9 % 19,805 10,633 Asia (excluding China and Japan) 9.5 % 11.1 % 3,157 2,155 United States of America 11.5 % 12.4 % 3,816 2,392 Japan 7.2 % 8.3 % 2,373 1,598 Europe (excluding UK) 5.0 % 5.9 % 1,667 1,143 Canada 2.4 % 2.9 % 793 585 Australia 1.6 % 1.8 % 519 351 UK 0.5 % 0.6 % 166 112 Other countries 2.4 % 2.1 % 787 393 Consolidated sales revenue 100.0 % 100.0 % 33,083 19,362 (a) Consolidated sales revenue by geographical destination is based on the ultimate country of destination of the product, if known. If the eventual destination of the product sold through traders is not known then revenue is allocated to the location of the product at the time when control is transferred. Rio Tinto is domiciled in both the UK and Australia. |
Consolidated sales revenue by product | Six months ended 30 June 2021 Six months ended 30 June 2020 Consolidated sales revenue by product Revenue from contracts with customers Other revenue (a) US$m Consolidated sales revenue Revenue from contracts with customers US$m Other revenue (a) US$m Consolidated sales revenue Iron ore 21,964 1,108 23,072 12,182 82 12,264 Aluminium, Alumina and Bauxite 5,733 84 5,817 4,454 (19) 4,435 Copper 1,472 77 1,549 642 (9) 633 Industrial minerals 1,141 4 1,145 991 (7) 984 Gold 506 (6) 500 214 4 218 Diamonds 160 — 160 141 — 141 Other products (b) 827 13 840 692 (5) 687 Consolidated sales revenue 31,803 1,280 33,083 19,316 46 19,362 Share of equity accounted unit sales and intra-subsidiary/equity accounted unit sales 1,545 971 Gross product sales 34,628 20,333 (a) Certain of the Group’s products may be provisionally priced at the date revenue is recognised based on forward rates. The subsequent changes in value of provisionally priced receivables through to settlement is classified as ‘Other revenue’ above. (b) "Other products" includes metallic co-products, molybdenum, silver and other commodities. This category also now includes uranium sales of US$76 million (30 June 2020: US$149 million) that were previously disclosed separately. |
Other disclosures - (Tables)
Other disclosures - (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Disclosures [Abstract] | |
Summary of transactions and balances with equity accounted units | Income statement items Six months ended Six months ended US$m US$m Purchases from equity accounted units (543) (519) Sales to equity accounted units 205 119 Cash flow statement items Dividends from equity accounted units 726 183 Net receipts/(funding) from/of equity accounted units 28 (14) Balance sheet items US$m US$m Investments in equity accounted units (a) 3,660 3,764 Loans to equity accounted units — 41 Trade and other receivables: amounts due from equity accounted units (b) 246 251 Trade and other payables: amounts due to equity accounted units (240) (241) (a) Investments in equity accounted units include quasi equity loans. (b) This includes prepayments of tolling charges. |
Summary of subsidiaries | This summarised financial information is shown on a 100% basis. It represents the amounts shown in the subsidiaries’ financial statements prepared in accordance with IFRS under Group accounting policies, including fair value adjustments, and before intercompany eliminations Iron Ore Iron Ore Turquoise Hill (a)(b)(c) Turquoise Hill (a)(b)(c) 2021 2020 2021 2020 Income statement summary for six months ended 30 June US$m US$m US$m US$m Revenue 1,718 1,011 844 409 Profit/(loss) after tax 654 257 426 (23) – attributable to non-controlling interests 271 106 211 (89) – attributable to Rio Tinto 383 151 215 66 Other comprehensive income/(loss) 96 (91) 5 (2) Total comprehensive income/(loss) 750 166 431 (25) 30 June 31 December 30 June 31 December Balance sheet summary as at: US$m US$m US$m US$m Non-current assets 2,879 2,733 11,789 10,930 Current assets 840 670 1,033 1,496 Current liabilities (493) (462) (530) (540) Non-current liabilities (1,034) (993) (4,392) (4,404) Net assets 2,192 1,948 7,900 7,482 – attributable to non-controlling interests 907 804 2,600 2,424 – attributable to Rio Tinto 1,285 1,144 5,300 5,058 2021 2020 2021 2020 Cash flow statement summary for six months ended 30 June US$m US$m US$m US$m Cash flow from operations 964 403 95 29 Dividends paid to non-controlling interests (206) — — — (a) Turquoise Hill Resources Ltd holds a controlling interest in Oyu Tolgoi LLC ("OT"). (b) Under the terms of the project finance facility held by OT, there are certain restrictions on the ability of OT to make shareholder distributions. (c) Since 2011, Turquoise Hill has funded common share investments in OT on behalf of Erdenes Oyu Tolgoi LLC ("Erdenes"). In accordance with the Amended and Restated Shareholders Agreement dated 8 June 2011, such funded amounts earn interest at an effective annual rate of LIBOR plus 6.5% and are repayable to them via a pledge over Erdenes' share of future OT common share dividends. Erdenes also has the right to reduce the outstanding balance by making payments directly to Turquoise Hill. Common share investments funded on behalf of Erdenes are recorded as a reduction to the net carrying value of non-controlling interests. As at 30 June 2021, the cumulative amount of such funding was US$1,399 million (31 December 2020: US$1,378 million), excluding accrued interest of US$877 million (31 December 2020: US$804 million) relating to this funding. Other disclosures (continued) Summary financial information for subsidiaries that have non-controlling interests that are material to the Group (continued) Robe River Robe River Other companies and eliminations (d) Other companies and eliminations (d) Robe River Robe River 2021 2020 2021 2020 2021 2020 Income statement summary for six months ended 30 June US$m US$m US$m US$m US$m US$m Revenue 1,289 734 1,504 851 2,793 1,585 Profit after tax 752 403 841 424 1,593 827 – attributable to non-controlling interests 301 158 — — 301 158 – attributable to Rio Tinto 451 245 841 424 1,292 669 Other comprehensive loss (80) (88) (37) (38) (117) (126) Total comprehensive income 672 315 804 386 1,476 701 30 June 31 December 30 June 31 December 30 June 31 December Balance sheet summary as at: US$m US$m US$m US$m US$m US$m Non-current assets 3,535 3,452 4,238 4,247 7,773 7,699 Current assets 1,134 865 1,870 2,239 3,004 3,104 Current liabilities (583) (380) (339) (414) (922) (794) Non-current liabilities (424) (255) (4,234) (4,752) (4,658) (5,007) Net assets 3,662 3,682 1,535 1,320 5,197 5,002 – attributable to non-controlling interests 1,463 1,397 — — 1,463 1,397 – attributable to Rio Tinto 2,199 2,285 1,535 1,320 3,734 3,605 2021 2020 2021 2020 2021 2020 Cash flow statement summary for six months ended 30 June US$m US$m US$m US$m US$m US$m Cash flow from operations 1,134 665 1,643 1,066 2,777 1,731 Dividends paid to non-controlling interests (201) (211) — — (201) (211) (d) "Other companies and eliminations" includes North Mining Limited (a wholly-owned subsidiary of the Group which accounts for its interest in Robe River) and goodwill of US$375 million at 30 June 2021 (31 December 2020: US$383 million) that arose on the Group's acquisition of its interest in Robe River. |
Summary of principal joint ventures | This summarised financial information is shown on a 100% basis. It represents the amounts shown in the joint ventures’ financial statements prepared in accordance with IFRS under Group accounting policies, including fair value adjustments and amounts due to and from Rio Tinto. Minera Escondida Ltda (a) Minera Escondida Ltda (a) Sohar Aluminum Co. L.L.C. (b) Sohar Aluminum Co. L.L.C. (b) 2021 2020 2021 2020 Income statement summary for six months ended 30 June US$m US$m US$m US$m Revenue 4,953 3,137 420 325 Depreciation and amortisation (580) (797) (60) (55) Other operating costs (1,506) (1,243) (245) (225) Operating profit 2,867 1,097 115 45 Finance expense (73) (70) (10) (15) Income tax (1,034) (370) (15) (5) Profit after tax 1,760 657 90 25 Other comprehensive income/(loss) 40 (27) — — Total comprehensive income 1,800 630 90 25 30 June 31 December 30 June 31 December Balance sheet summary as at: US$m US$m US$m US$m Non-current assets 11,710 11,833 1,805 1,850 Current assets 3,010 3,107 420 270 Current liabilities (1,777) (1,813) (150) (675) Non-current liabilities (4,796) (4,560) (745) (200) Net assets 8,147 8,567 1,330 1,245 Assets and liabilities above include: – cash and cash equivalents 887 1,103 145 30 – current financial liabilities (577) (790) (55) (565) – non-current financial liabilities (2,800) (2,560) (575) (30) 2021 2020 2021 2020 Cash flow statement summary for six months ended 30 June US$m US$m US$m US$m Dividends received from joint venture (Rio Tinto share) 720 183 — — (a) In addition to its “Investment in equity accounted units”, the Group recognises deferred tax liabilities of US$334 million (31 December 2020: US$358 million) relating to tax that would be payable if the Group's share of the earnings retained in Minera Escondida Ltda were remitted to the Group. (b) Under covenants stipulated in the agreement to Sohar Aluminium Co. L.L.C.'s secured loan facilities, there are certain restrictions on the ability of Sohar Aluminium Co. L.L.C to make shareholder distributions. |
Rio Tinto financial informati_3
Rio Tinto financial information by business unit - Schedule of financial information by business unit (Detail) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Disclosure of operating segments [line items] | |||
Consolidated sales revenue | $ 33,083 | $ 19,362 | |
EBITDA | 17,993 | 5,929 | |
Impairment charges | 0 | (1,163) | |
Depreciation and amortisation in subsidiaries excluding capitalised depreciation | 2,253 | 1,974 | |
Finance items | 56 | (650) | |
Profit before taxation | 18,049 | 5,279 | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 12,313 | 3,316 | |
Capital expenditure | 3,310 | 2,665 | |
Add back: Proceeds from disposal of property, plant and equipment | 26 | 28 | |
Capital expenditure | 3,336 | 2,693 | |
Depreciation and amortisation expense | 2,307 | 2,092 | |
Operating assets | 49,835 | $ 47,718 | |
Less: Net cash/(debt) | 3,140 | (664) | |
Equity attributable to owners of Rio Tinto | 52,975 | 47,054 | |
Other operations | |||
Disclosure of operating segments [line items] | |||
Consolidated sales revenue | 85 | 158 | |
Capital expenditure | 0 | 1 | |
Depreciation and amortisation expense | 92 | 99 | |
Product group | |||
Disclosure of operating segments [line items] | |||
Consolidated sales revenue | 34,628 | 20,333 | |
EBITDA | 21,420 | 10,004 | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 12,466 | 5,022 | |
Capital expenditure | 3,395 | 2,802 | |
Depreciation and amortisation expense | 2,514 | 2,367 | |
Central pensions, share-based payments, insurance and derivatives | |||
Disclosure of operating segments [line items] | |||
EBITDA | 119 | 102 | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 120 | 97 | |
Restructuring, project and one-off costs | |||
Disclosure of operating segments [line items] | |||
EBITDA | (36) | (72) | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | (23) | (53) | |
Central costs | |||
Disclosure of operating segments [line items] | |||
EBITDA | (346) | (273) | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | (294) | (233) | |
Central exploration and evaluation | |||
Disclosure of operating segments [line items] | |||
EBITDA | (120) | (121) | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | (100) | (97) | |
Net interest | |||
Disclosure of operating segments [line items] | |||
Profit/(loss) after tax – attributable to owners of Rio Tinto | (3) | 14 | |
Underlying EBITDA/earnings | |||
Disclosure of operating segments [line items] | |||
EBITDA | 21,037 | 9,640 | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 12,166 | 4,750 | |
Items excluded from underlying EBITDA/earnings | |||
Disclosure of operating segments [line items] | |||
EBITDA | (177) | (119) | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 147 | (1,434) | |
Other items | |||
Disclosure of operating segments [line items] | |||
Capital expenditure | 35 | 22 | |
Depreciation and amortisation expense | 42 | 39 | |
Operating assets | (1,224) | (2,165) | |
Share of equity accounted unit sales and intra-subsidiary/equity accounted unit sales | |||
Disclosure of operating segments [line items] | |||
Share of equity accounted unit sales and intra-subsidiary/equity accounted unit sales | (1,545) | (971) | |
Depreciation and amortisation in equity accounted units | (249) | (314) | |
Taxation and finance items in equity accounted units | (365) | (141) | |
Capital expenditure | (120) | (159) | |
Depreciation and amortisation expense | (249) | (314) | |
Operating segments | |||
Disclosure of operating segments [line items] | |||
Capital expenditure | 3,395 | 2,802 | |
Depreciation and amortisation expense | 2,514 | 2,367 | |
Operating assets | 51,059 | 49,883 | |
Operating segments | Iron Ore | |||
Disclosure of operating segments [line items] | |||
Consolidated sales revenue | 21,707 | 11,465 | |
EBITDA | 16,060 | 7,698 | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 10,216 | 4,563 | |
Capital expenditure | 1,912 | 1,185 | |
Depreciation and amortisation expense | 1,022 | 840 | |
Operating assets | 17,209 | 16,650 | |
Operating segments | Aluminium | |||
Disclosure of operating segments [line items] | |||
Consolidated sales revenue | 5,932 | 4,487 | |
EBITDA | 1,924 | 925 | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 921 | 193 | |
Capital expenditure | 524 | 482 | |
Depreciation and amortisation expense | 645 | 594 | |
Operating assets | 15,457 | 15,365 | |
Operating segments | Copper | |||
Disclosure of operating segments [line items] | |||
Consolidated sales revenue | 3,779 | 1,983 | |
EBITDA | 2,048 | 686 | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 885 | 111 | |
Capital expenditure | 750 | 987 | |
Depreciation and amortisation expense | 523 | 568 | |
Operating assets | 13,972 | 13,362 | |
Operating segments | Minerals | |||
Disclosure of operating segments [line items] | |||
Consolidated sales revenue | 3,270 | 2,322 | |
EBITDA | 1,398 | 712 | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 498 | 190 | |
Capital expenditure | 209 | 147 | |
Depreciation and amortisation expense | 232 | 266 | |
Operating assets | 5,305 | 4,927 | |
Operating segments | Other operations | |||
Disclosure of operating segments [line items] | |||
Consolidated sales revenue | 85 | 158 | |
EBITDA | (4) | 1 | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | (51) | (29) | |
Capital expenditure | 0 | 1 | |
Depreciation and amortisation expense | 92 | 99 | |
Operating assets | (848) | (550) | |
Inter-segment transactions | |||
Disclosure of operating segments [line items] | |||
Consolidated sales revenue | (145) | (82) | |
EBITDA | (6) | (18) | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | (3) | (6) | |
Operating assets | (36) | 129 | |
Pilbara | Operating segments | Iron Ore | |||
Disclosure of operating segments [line items] | |||
Consolidated sales revenue | 21,476 | 11,246 | |
EBITDA | 16,207 | 7,702 | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 10,348 | 4,628 | |
Capital expenditure | 1,907 | 1,179 | |
Depreciation and amortisation expense | 1,011 | 831 | |
Operating assets | $ 16,558 | 16,253 | |
Dampier Salt | Operating segments | Iron Ore | |||
Disclosure of operating segments [line items] | |||
Rio Tinto interest (as a percent) | 68.40% | ||
Consolidated sales revenue | $ 145 | 112 | |
EBITDA | 21 | 25 | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 5 | 8 | |
Capital expenditure | 5 | 6 | |
Depreciation and amortisation expense | 11 | 9 | |
Operating assets | $ 169 | 163 | |
Rio Tinto Kennecott | Operating segments | Copper | |||
Disclosure of operating segments [line items] | |||
Rio Tinto interest (as a percent) | 100.00% | ||
Consolidated sales revenue | $ 1,318 | 635 | |
EBITDA | 676 | 193 | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 323 | (12) | |
Capital expenditure | 203 | 320 | |
Depreciation and amortisation expense | 249 | 223 | |
Operating assets | $ 2,282 | 2,317 | |
Escondida | Operating segments | Copper | |||
Disclosure of operating segments [line items] | |||
Rio Tinto interest (as a percent) | 30.00% | ||
Consolidated sales revenue | $ 1,486 | 941 | |
EBITDA | 1,033 | 564 | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 537 | 204 | |
Capital expenditure | 83 | 118 | |
Depreciation and amortisation expense | 174 | 239 | |
Operating assets | 2,663 | 2,726 | |
Iron Ore Company of Canada | |||
Disclosure of operating segments [line items] | |||
Consolidated sales revenue | 1,718 | 1,011 | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 383 | 151 | |
Equity attributable to owners of Rio Tinto | $ 1,285 | 1,144 | |
Iron Ore Company of Canada | Operating segments | Minerals | |||
Disclosure of operating segments [line items] | |||
Rio Tinto interest (as a percent) | 58.70% | ||
Consolidated sales revenue | $ 1,807 | 1,086 | |
EBITDA | 1,105 | 473 | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 398 | 156 | |
Capital expenditure | 90 | 51 | |
Depreciation and amortisation expense | 96 | 88 | |
Operating assets | 1,052 | 1,009 | |
Rio Tinto Iron & Titanium | Operating segments | Minerals | |||
Disclosure of operating segments [line items] | |||
Consolidated sales revenue | 973 | 773 | |
EBITDA | 305 | 222 | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 146 | 80 | |
Capital expenditure | 83 | 60 | |
Depreciation and amortisation expense | 109 | 95 | |
Operating assets | $ 3,538 | 3,390 | |
Rio Tinto Borates | Operating segments | Minerals | |||
Disclosure of operating segments [line items] | |||
Rio Tinto interest (as a percent) | 100.00% | ||
Consolidated sales revenue | $ 300 | 293 | |
EBITDA | 64 | 83 | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 34 | 47 | |
Capital expenditure | 17 | 16 | |
Depreciation and amortisation expense | 25 | 25 | |
Operating assets | 487 | 502 | |
Oyu Tolgoi and Turquoise Hill | Operating segments | Copper | |||
Disclosure of operating segments [line items] | |||
Consolidated sales revenue | 844 | 409 | |
EBITDA | 528 | 89 | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 152 | 11 | |
Capital expenditure | 460 | 548 | |
Depreciation and amortisation expense | 98 | 104 | |
Operating assets | 8,854 | 8,111 | |
Evaluation projects/other | Operating segments | Iron Ore | |||
Disclosure of operating segments [line items] | |||
Consolidated sales revenue | 1,003 | 252 | |
EBITDA | 161 | (37) | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 110 | (77) | |
Capital expenditure | 0 | 0 | |
Depreciation and amortisation expense | 0 | 0 | |
Operating assets | 833 | 338 | |
Evaluation projects/other | Operating segments | Aluminium | |||
Disclosure of operating segments [line items] | |||
Consolidated sales revenue | 0 | 0 | |
EBITDA | (64) | (29) | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | (49) | (14) | |
Evaluation projects/other | Operating segments | Copper | |||
Disclosure of operating segments [line items] | |||
Consolidated sales revenue | 131 | (2) | |
EBITDA | (183) | (158) | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | (125) | (91) | |
Capital expenditure | 4 | 3 | |
Depreciation and amortisation expense | 2 | 2 | |
Operating assets | 154 | 192 | |
Evaluation projects/other | Operating segments | Minerals | |||
Disclosure of operating segments [line items] | |||
Consolidated sales revenue | 30 | 29 | |
EBITDA | (92) | (54) | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | (85) | (53) | |
Capital expenditure | 8 | 0 | |
Depreciation and amortisation expense | 0 | 0 | |
Operating assets | 37 | 33 | |
Bauxite | Operating segments | Aluminium | |||
Disclosure of operating segments [line items] | |||
Consolidated sales revenue | 1,082 | 1,170 | |
EBITDA | 338 | 514 | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 105 | 257 | |
Capital expenditure | 67 | 53 | |
Depreciation and amortisation expense | 165 | 139 | |
Operating assets | 2,551 | 2,593 | |
Alumina | Operating segments | Aluminium | |||
Disclosure of operating segments [line items] | |||
Consolidated sales revenue | 1,359 | 1,096 | |
EBITDA | 295 | 115 | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 155 | 38 | |
Capital expenditure | 113 | 74 | |
Depreciation and amortisation expense | 80 | 59 | |
Operating assets | 2,116 | 2,294 | |
Primary Metal | Operating segments | Aluminium | |||
Disclosure of operating segments [line items] | |||
Consolidated sales revenue | 3,193 | 2,111 | |
EBITDA | 1,101 | 284 | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 564 | (59) | |
Capital expenditure | 285 | 303 | |
Depreciation and amortisation expense | 347 | 325 | |
Operating assets | 9,506 | 9,361 | |
Pacific Aluminium | Operating segments | Aluminium | |||
Disclosure of operating segments [line items] | |||
Consolidated sales revenue | 1,285 | 965 | |
EBITDA | 273 | 5 | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 174 | (50) | |
Capital expenditure | 58 | 54 | |
Depreciation and amortisation expense | 53 | 71 | |
Operating assets | 409 | 455 | |
Integrated operations | Operating segments | Aluminium | |||
Disclosure of operating segments [line items] | |||
Consolidated sales revenue | 5,528 | 4,080 | |
EBITDA | 1,971 | 951 | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 958 | 210 | |
Other product group Items | Operating segments | Aluminium | |||
Disclosure of operating segments [line items] | |||
Consolidated sales revenue | 404 | 407 | |
EBITDA | 17 | 3 | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 12 | (3) | |
Product group operations | Operating segments | Aluminium | |||
Disclosure of operating segments [line items] | |||
Consolidated sales revenue | 5,932 | 4,487 | |
EBITDA | 1,988 | 954 | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 970 | 207 | |
Product group operations | Operating segments | Copper | |||
Disclosure of operating segments [line items] | |||
Consolidated sales revenue | 3,648 | 1,985 | |
EBITDA | 2,237 | 846 | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 1,012 | 203 | |
Capital expenditure | 746 | 986 | |
Depreciation and amortisation expense | 521 | 566 | |
Operating assets | 13,799 | 13,154 | |
Product group operations | Operating segments | Minerals | |||
Disclosure of operating segments [line items] | |||
Consolidated sales revenue | 3,240 | 2,293 | |
EBITDA | 1,490 | 766 | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 583 | 243 | |
Capital expenditure | 201 | 147 | |
Depreciation and amortisation expense | 232 | 266 | |
Operating assets | 5,268 | 4,894 | |
Diamonds | |||
Disclosure of operating segments [line items] | |||
Consolidated sales revenue | 160 | 141 | |
Diamonds | Operating segments | Minerals | |||
Disclosure of operating segments [line items] | |||
Consolidated sales revenue | 160 | 141 | |
EBITDA | 16 | (12) | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 5 | (40) | |
Capital expenditure | 11 | 20 | |
Depreciation and amortisation expense | 2 | 58 | |
Operating assets | 191 | (7) | |
Simandou iron ore project | Operating segments | Copper | |||
Disclosure of operating segments [line items] | |||
Consolidated sales revenue | 0 | 0 | |
EBITDA | (6) | (2) | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | (2) | (1) | |
Capital expenditure | 0 | (2) | |
Depreciation and amortisation expense | 0 | 0 | |
Operating assets | 19 | 16 | |
Intra-segment and other | Operating segments | Iron Ore | |||
Disclosure of operating segments [line items] | |||
Consolidated sales revenue | (917) | (145) | |
EBITDA | (329) | 8 | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | (247) | 4 | |
Capital expenditure | 0 | 0 | |
Depreciation and amortisation expense | 0 | 0 | |
Operating assets | (351) | (104) | |
Intra-segment and other | Operating segments | Aluminium | |||
Disclosure of operating segments [line items] | |||
Consolidated sales revenue | (1,391) | (1,262) | |
EBITDA | (36) | 33 | |
Profit/(loss) after tax – attributable to owners of Rio Tinto | (40) | 24 | |
Capital expenditure | 1 | (2) | |
Depreciation and amortisation expense | 0 | $ 0 | |
Operating assets | $ 875 | $ 662 |
Notes to financial informatio_2
Notes to financial information by business unit (Detail) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of operating segments [line items] | |
Percentage of capital expenditure in subsidiaries | 100.00% |
Hope Downs Joint Venture | |
Disclosure of operating segments [line items] | |
Proportion of ownership interest in joint venture (as a percent) | 50.00% |
Robe river iron associates | |
Disclosure of operating segments [line items] | |
Proportion of ownership interest in joint venture (as a percent) | 65.00% |
Proportion of net beneficial interest | 53.00% |
Robe river iron associates | Thirty Percent | |
Disclosure of operating segments [line items] | |
Net beneficial interest held percentage | 30.00% |
Net beneficial interest held percentage as owned subsidiary | 60.00% |
Robe river iron associates | Thirty Five Percentage | |
Disclosure of operating segments [line items] | |
Net beneficial interest held percentage | 35.00% |
Net beneficial interest held percentage as owned subsidiary | 100.00% |
Diavik | |
Disclosure of operating segments [line items] | |
Proportion of ownership interest in joint venture (as a percent) | 60.00% |
Hamersley | |
Disclosure of operating segments [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Oyu Tolgoi | Turquoise Hill Resources Ltd | |
Disclosure of operating segments [line items] | |
Percentage of share class held in subsidiaries | 50.80% |
Oyu Tolgoi | Turquoise Hill Resources Ltd | Oyo Tolgoi Copper-Gold Mine | |
Disclosure of operating segments [line items] | |
Percentage of share class held in subsidiaries | 66.00% |
Simfer Jersey Limited | |
Disclosure of operating segments [line items] | |
Proportion of ownership interest in subsidiary | 53.00% |
Simfer Sa | |
Disclosure of operating segments [line items] | |
Proportion of ownership interest in subsidiary | 85.00% |
Proportion of ownership interests held by non-controlling interests | 45.05% |
Rio Tinto Fer Et Titane Inc | |
Disclosure of operating segments [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Qit Madagascar Minerals | |
Disclosure of operating segments [line items] | |
Proportion of ownership interest in subsidiary | 80.00% |
Richards Bay Minerals | |
Disclosure of operating segments [line items] | |
Proportion of ownership interest in subsidiary | 74.00% |
Argyle | |
Disclosure of operating segments [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Gove Alumina Refinery And Rio Tinto Marine | |
Disclosure of operating segments [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Basis of preparation - Addition
Basis of preparation - Additional Information (Details) tonnes in Millions, $ in Billions | 6 Months Ended |
Jun. 30, 2021USD ($)tonnes | |
Basis Of Presentation [Abstract] | |
Credit derivative, nominal amount | $ | $ 7.3 |
Short and long term legacy alumina sales contracts | tonnes | 2.1 |
Percentage of volume commitments | 30.00% |
Percentage of opportunity loss | 10.00% |
Impairment charges - Summary of
Impairment charges - Summary of impairment charges (Detail) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |||
Total impairment charge | $ 0 | $ (1,134) | |
Impairment charges of consolidated balances | [1] | 0 | (1,015) |
Impairment charges related to EAUs (pre-tax) | 0 | (148) | |
Total impairment charge | 0 | (1,163) | |
Taxation (including related to EAUs) | 0 | 130 | |
Total impairment in the income statement | 0 | (1,033) | |
Intangible assets | |||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |||
Total impairment charge | 0 | (4) | |
Property, plant and equipment | |||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |||
Total impairment charge | 0 | (1,011) | |
Investment in equity accounted units ('EAUs') | |||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |||
Total impairment charge | 0 | (119) | |
Aluminium, Alumina and Bauxite | Pacific Aluminum | |||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |||
Total impairment charge | 0 | (489) | |
Aluminium, Alumina and Bauxite | ISAL | |||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |||
Total impairment charge | 0 | (204) | |
Minerals | Diavik | |||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |||
Total impairment charge | $ 0 | $ (441) | |
[1] | Refer to Impairment charges note on pages F-13 and F-14. |
Impairment charges - Narrative
Impairment charges - Narrative (Details) - USD ($) $ in Millions | Jul. 09, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 |
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Impairment charges, net | $ 0 | $ (1,033) | ||
Impairment loss | 0 | 1,134 | ||
Impairment loss of equity accounted unit | 0 | 148 | ||
Investment in equity accounted units ('EAUs') | ||||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Impairment loss | 0 | 119 | ||
Pacific Aluminum | ||||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Contract termination notice period | 14 months | |||
Pacific Aluminum | Aluminium, Alumina and Bauxite | ||||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Recoverable amount of asset or cash-generating unit | $ 273 | |||
Discount rate applied to cash flow projections | 6.60% | |||
Impairment loss | $ 0 | 489 | ||
Impairment loss | 26 | |||
Pacific Aluminum | Aluminium, Alumina and Bauxite | Pre-tax | ||||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Impairment loss | 36 | |||
ISAL | Aluminium, Alumina and Bauxite | ||||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Recoverable amount of asset or cash-generating unit | $ 139 | |||
Discount rate applied to cash flow projections | 6.60% | |||
Impairment loss | 0 | $ 204 | ||
Impairment loss | 204 | $ 93 | ||
Reversal of impairment loss recognised in profit or loss | 111 | |||
Diavik | Minerals | ||||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||||
Impairment loss | $ 0 | $ 441 | ||
Proportion of ownership interest in joint venture (as a percent) | 40.00% |
Acquisitions and disposals - Ad
Acquisitions and disposals - Additional information (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure Of Acquisitions And Disposals [Line Items] | ||
Disposals of subsidiaries, joint ventures, unincorporated joint operations and associates | $ 10 | $ 10 |
Prima facie tax reconciliatio_2
Prima facie tax reconciliation - Summary of prima facie tax reconciliation (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Major components of tax expense (income) [abstract] | ||
Profit before taxation | $ 18,049 | $ 5,279 |
Deduct: share of profit after tax of equity accounted units | (556) | (198) |
Add back: impairment of investments in equity accounted units | 0 | 119 |
Parent companies' and subsidiaries' profit before tax | $ 17,493 | $ 5,200 |
Applicable tax rate | 19.00% | 19.00% |
Prima facie tax payable at UK rate of 19% (2020: 19%) | $ 3,324 | $ 988 |
Higher rate of taxation on Australian underlying earnings | 1,609 | 707 |
Impact of items excluded in arriving at underlying earnings: | ||
– Impairment charges | 0 | 92 |
– Exchange and gains/losses on derivatives | (34) | 18 |
– Losses from increases to closure estimates (non-operating and fully impaired sites) | (9) | (21) |
Other tax rates applicable outside the UK and Australia on underlying earnings | 77 | (79) |
Amounts under/(over) provided in prior years | 43 | (6) |
Recognition of previously unrecognised deferred tax assets | (77) | 0 |
Write-down of previously recognised deferred tax assets | 8 | 12 |
Other items | 40 | 117 |
Total taxation charge | 4,981 | 1,828 |
Income tax on share of profit of equity accounted units | $ (318) | (111) |
Income tax credit on impairment of equity accounted units | $ 29 |
Consolidated net (debt)_cash -
Consolidated net (debt)/cash - Analysis of changes in consolidated net (debt)/cash (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Disclosure of financial liabilities [Abstract] | |
Net debt at beginning balance | $ (664) |
Foreign exchange adjustment | (18) |
Cash movements excluding exchange movements, net debt | 3,937 |
Other non-cash movements | (115) |
Net debt at ending balance | 3,140 |
Borrowings Excluding Overdraft | |
Disclosure of financial liabilities [Abstract] | |
Financial liabilities, beginning balance | (12,653) |
Foreign exchange adjustment | 5 |
Cash movements excluding exchange movements | 120 |
Other non-cash movements | 125 |
Financial liabilities, ending balance | (12,403) |
Lease liabilities | |
Disclosure of financial liabilities [Abstract] | |
Financial liabilities, beginning balance | (1,178) |
Foreign exchange adjustment | 1 |
Cash movements excluding exchange movements | 170 |
Other non-cash movements | (94) |
Financial liabilities, ending balance | (1,101) |
Debt-related derivatives (included in other financial liabilities/assets | |
Disclosure of financial liabilities [Abstract] | |
Financial liabilities, beginning balance | 248 |
Foreign exchange adjustment | (3) |
Cash movements excluding exchange movements | (1) |
Other non-cash movements | (133) |
Financial liabilities, ending balance | 111 |
Cash and cash equivalents | |
Disclosure of financial liabilities [Abstract] | |
Cash and cash equivalents and other investments, beginning balance | 10,381 |
Foreign exchange adjustment | (21) |
Cash movements excluding exchange movements | 3,663 |
Other non-cash movements | 0 |
Cash and cash equivalents and other investments, ending balance | 14,023 |
Other Investments | |
Disclosure of financial liabilities [Abstract] | |
Cash and cash equivalents and other investments, beginning balance | 2,538 |
Foreign exchange adjustment | 0 |
Cash movements excluding exchange movements | (15) |
Other non-cash movements | (13) |
Cash and cash equivalents and other investments, ending balance | $ 2,510 |
Consolidated net (debt)_cash _2
Consolidated net (debt)/cash - Analysis of changes in consolidated net (debt)/cash footnotes (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Disclosure of financial liabilities [Abstract] | |||
Borrowings | $ 12,405 | $ 12,653 | |
Borrowings and other financial liabilities | 13,914 | 14,015 | |
Bank overdrafts repayable on demand (unsecured) | (4) | 0 | $ (15) |
Total other current financial liabilities | 704 | 607 | |
Other non-current financial liabilities | 13,210 | 13,408 | |
Reverse repurchase agreements | 1,800 | 1,200 | |
Borrowings Excluding Overdrafts, Including Lease Liabilities | |||
Disclosure of financial liabilities [Abstract] | |||
Borrowings | 13,504 | 13,831 | |
Net Other Financial Liabilities | |||
Disclosure of financial liabilities [Abstract] | |||
Total other current financial liabilities | 150 | 23 | |
Other non-current financial liabilities | $ 256 | $ 161 |
Provisions and post-retiremen_3
Provisions and post-retirement benefits - Summary of Provisions, including post-retirement benefits (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Disclosure of other provisions [Line Items] | ||
Opening balance | $ 17,665 | |
Adjustment on currency translation | (109) | |
Adjustments to mining properties/right of use assets: | ||
– changes in estimate | 24 | |
Charged/(credited) to profit: | ||
– increases to existing and new provisions | 502 | |
– decreases to existing provisions and unused amounts reversed | (24) | |
– exchange losses on provisions | 7 | |
– amortisation of discount | 207 | |
Utilised in the period | (425) | |
Actuarial gains recognised in equity | (616) | |
Transfers and other movements | (321) | |
Closing balance | 16,910 | |
Balance sheet analysis: | ||
Current | 1,834 | $ 1,729 |
Non-current | 15,076 | 15,936 |
Total | 16,910 | 17,665 |
Pensions and post retirement healthcare | ||
Disclosure of other provisions [Line Items] | ||
Opening balance | 3,055 | |
Adjustment on currency translation | 41 | |
Adjustments to mining properties/right of use assets: | ||
– changes in estimate | 0 | |
Charged/(credited) to profit: | ||
– increases to existing and new provisions | 82 | |
– decreases to existing provisions and unused amounts reversed | 0 | |
– exchange losses on provisions | 0 | |
– amortisation of discount | 0 | |
Utilised in the period | (76) | |
Actuarial gains recognised in equity | (616) | |
Transfers and other movements | (291) | |
Closing balance | 2,195 | |
Balance sheet analysis: | ||
Current | 71 | |
Non-current | 2,124 | |
Total | 2,195 | 3,055 |
Other employee entitlements | ||
Disclosure of other provisions [Line Items] | ||
Opening balance | 419 | |
Adjustment on currency translation | (10) | |
Adjustments to mining properties/right of use assets: | ||
– changes in estimate | 0 | |
Charged/(credited) to profit: | ||
– increases to existing and new provisions | 60 | |
– decreases to existing provisions and unused amounts reversed | (10) | |
– exchange losses on provisions | 0 | |
– amortisation of discount | 0 | |
Utilised in the period | (63) | |
Actuarial gains recognised in equity | 0 | |
Transfers and other movements | 0 | |
Closing balance | 396 | |
Balance sheet analysis: | ||
Current | 306 | |
Non-current | 90 | |
Total | 396 | 419 |
Close down and restoration/ environmental | ||
Disclosure of other provisions [Line Items] | ||
Opening balance | 13,335 | |
Adjustment on currency translation | (133) | |
Adjustments to mining properties/right of use assets: | ||
– changes in estimate | 21 | |
Charged/(credited) to profit: | ||
– increases to existing and new provisions | 265 | |
– decreases to existing provisions and unused amounts reversed | (2) | |
– exchange losses on provisions | 7 | |
– amortisation of discount | 206 | |
Utilised in the period | (231) | |
Actuarial gains recognised in equity | 0 | |
Transfers and other movements | (1) | |
Closing balance | 13,467 | |
Balance sheet analysis: | ||
Current | 917 | |
Non-current | 12,550 | |
Total | 13,467 | 13,335 |
Other | ||
Disclosure of other provisions [Line Items] | ||
Opening balance | 856 | |
Adjustment on currency translation | (7) | |
Adjustments to mining properties/right of use assets: | ||
– changes in estimate | 3 | |
Charged/(credited) to profit: | ||
– increases to existing and new provisions | 95 | |
– decreases to existing provisions and unused amounts reversed | (12) | |
– exchange losses on provisions | 0 | |
– amortisation of discount | 1 | |
Utilised in the period | (55) | |
Actuarial gains recognised in equity | 0 | |
Transfers and other movements | (29) | |
Closing balance | 852 | |
Balance sheet analysis: | ||
Current | 540 | |
Non-current | 312 | |
Total | $ 852 | $ 856 |
Provisions and post-retiremen_4
Provisions and post-retirement benefits - Summary of Provisions, including post-retirement benefits (footnotes) (Detail) € in Millions, $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021USD ($) | Jun. 30, 2021EUR (€) | Dec. 31, 2020USD ($) | |
Disclosure of other provisions [Line Items] | |||
Employee benefits pre-tax charge | $ 3 | ||
Other employee entitlements | |||
Disclosure of other provisions [Line Items] | |||
Provision for long service leave | 275 | $ 283 | |
Provisions for redundancy and severance payments | 52 | 62 | |
Close down and restoration/ environmental | |||
Disclosure of other provisions [Line Items] | |||
Closure related receivables | 595 | $ 574 | |
Wholly or partly funded defined benefit plans | |||
Disclosure of other provisions [Line Items] | |||
Present value of pension assets | 89 | ||
Cash payment to execute buyout of partially funded pension scheme | $ 294 | € 247 |
Financial instruments disclos_3
Financial instruments disclosures - Carrying Amounts And Fair Values (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Carrying Value | ||
Borrowings | $ 12,405 | $ 12,653 |
Fair Value | ||
Borrowings | $ 14,558 | $ 15,076 |
Financial instruments disclos_4
Financial instruments disclosures - Additional information (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about financial instruments [line items] | ||
Borrowings | $ 12,405 | $ 12,653 |
Expected unconditional guaranteed royalty payments to be received | 155 | 113 |
Expected unconditional guaranteed royalty payments to be received, unadjusted | $ 56 | |
Percentage of change in coal spot price | 15.00% | |
Fair value hedges | Currency risk | ||
Disclosure of detailed information about financial instruments [line items] | ||
Hedged item, assets | $ 273 | 388 |
Hedged item, liabilities | 162 | 140 |
Interest rate swap contract | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 1,500 | |
Level 1 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Bonds, carrying value | 7,400 | 7,600 |
Bonds, fair value | 9,000 | 9,500 |
Level 3 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Borrowings | $ 4,200 | 4,200 |
Percentage of change in coal spot price | 15.00% | |
Increase in carrying value of forward contract due to coal spot price assumptions | $ 149 | 198 |
Decrease in carrying value of forward contract due to decrease in spot price | (41) | (46) |
Level 3 | Aluminium Forward Contracts Embedded In Electricity Purchase Contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Long-term embedded derivatives at fair value | (92) | 126 |
Level 3 | Fair value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Borrowings | $ 4,700 | $ 4,700 |
Financial instruments disclos_5
Financial instruments disclosures - Summary of borrowings in a hedge relationship (Details) - Interest rate risk - Borrowings in a Hedge Relationship - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Rio Tinto Finance plc Euro Bonds 2.875% due 2024 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | $ 546 | |
Carrying value | 530 | $ 555 |
Rio Tinto Finance (USA) Limited Bonds 3.75% 2025 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 1,200 | |
Carrying value | 1,268 | 1,299 |
Rio Tinto Finance (USA) Limited Bonds 7.125% 2028 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 750 | |
Carrying value | 960 | 1,005 |
Alcan Inc. Debentures 7.25% due 2028 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 100 | |
Carrying value | 107 | 109 |
Rio Tinto Finance plc Sterling Bonds 4.0% due 2029 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 807 | |
Carrying value | 713 | 717 |
Alcan Inc. Debentures 7.25% due 2031 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 400 | |
Carrying value | 427 | 438 |
Alcan Inc. Global Notes 6.125% due 2033 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 750 | |
Carrying value | 732 | 744 |
Alcan Inc. Global Notes 5.75% due 2035 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 300 | |
Carrying value | 287 | 292 |
Rio Tinto Finance (USA) Limited Bonds 5.2% 2040 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 1,150 | |
Carrying value | 1,168 | 1,173 |
Rio Tinto Finance (USA) plc Bonds 4.75% 2042 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 500 | |
Carrying value | 500 | 501 |
Rio Tinto Finance (USA) plc Bonds 4.125% 2042 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 750 | |
Carrying value | $ 742 | $ 743 |
Fixed interest rate | Rio Tinto Finance plc Euro Bonds 2.875% due 2024 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Borrowings, interest rate | 2.875% | |
Fixed interest rate | Rio Tinto Finance (USA) Limited Bonds 3.75% 2025 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Borrowings, interest rate | 3.75% | |
Fixed interest rate | Rio Tinto Finance (USA) Limited Bonds 7.125% 2028 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Borrowings, interest rate | 7.125% | |
Fixed interest rate | Alcan Inc. Debentures 7.25% due 2028 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Borrowings, interest rate | 7.25% | |
Fixed interest rate | Rio Tinto Finance plc Sterling Bonds 4.0% due 2029 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Borrowings, interest rate | 4.00% | |
Fixed interest rate | Alcan Inc. Debentures 7.25% due 2031 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Borrowings, interest rate | 7.25% | |
Fixed interest rate | Alcan Inc. Global Notes 6.125% due 2033 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Borrowings, interest rate | 6.125% | |
Fixed interest rate | Alcan Inc. Global Notes 5.75% due 2035 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Borrowings, interest rate | 5.75% | |
Fixed interest rate | Rio Tinto Finance (USA) Limited Bonds 5.2% 2040 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Borrowings, interest rate | 5.20% | |
Fixed interest rate | Rio Tinto Finance (USA) plc Bonds 4.75% 2042 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Borrowings, interest rate | 4.75% | |
Fixed interest rate | Rio Tinto Finance (USA) plc Bonds 4.125% 2042 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Borrowings, interest rate | 4.125% | |
3 Month LIBOR, plus basis spread | Rio Tinto Finance plc Euro Bonds 2.875% due 2024 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Weighted average interest rate after swaps | 1.64% | |
3 Month LIBOR, plus basis spread | Rio Tinto Finance (USA) Limited Bonds 3.75% 2025 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Weighted average interest rate after swaps | 1.39% | |
3 Month LIBOR, plus basis spread | Rio Tinto Finance (USA) Limited Bonds 7.125% 2028 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Weighted average interest rate after swaps | 3.27% | |
3 Month LIBOR, plus basis spread | Alcan Inc. Debentures 7.25% due 2028 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Weighted average interest rate after swaps | 5.43% | |
3 Month LIBOR, plus basis spread | Rio Tinto Finance plc Sterling Bonds 4.0% due 2029 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Weighted average interest rate after swaps | 2.65% | |
3 Month LIBOR, plus basis spread | Alcan Inc. Debentures 7.25% due 2031 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Weighted average interest rate after swaps | 5.72% | |
3 Month LIBOR, plus basis spread | Alcan Inc. Global Notes 6.125% due 2033 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Weighted average interest rate after swaps | 5.67% | |
3 Month LIBOR, plus basis spread | Alcan Inc. Global Notes 5.75% due 2035 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Weighted average interest rate after swaps | 5.18% | |
3 Month LIBOR, plus basis spread | Rio Tinto Finance (USA) Limited Bonds 5.2% 2040 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Weighted average interest rate after swaps | 3.79% | |
3 Month LIBOR, plus basis spread | Rio Tinto Finance (USA) plc Bonds 4.75% 2042 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Weighted average interest rate after swaps | 3.42% | |
3 Month LIBOR, plus basis spread | Rio Tinto Finance (USA) plc Bonds 4.125% 2042 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Weighted average interest rate after swaps | 2.83% |
Financial instruments disclos_6
Financial instruments disclosures - Summary of fair value of financial instruments (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Disclosure of detailed information about financial instruments [line items] | |||
Cash and cash equivalents | $ 14,027 | $ 10,381 | $ 6,269 |
Investments in equity shares and funds | 3,660 | 3,764 | |
Net assets | 58,169 | 51,903 | |
Provisionally priced receivables | 1,940 | 1,671 | |
Fair value | |||
Disclosure of detailed information about financial instruments [line items] | |||
Cash and cash equivalents | 14,027 | 10,381 | |
Investments in equity shares and funds | 113 | 75 | |
Other investments, including loans and pooled funds | 2,955 | 2,899 | |
Trade and other financial receivables | 3,794 | 3,286 | |
Forward contracts and option contracts: designated as hedges | (118) | 53 | |
Forward contracts and option contracts, not designated as hedges | 133 | 180 | |
Derivatives related to net debt | 111 | 248 | |
Trade and other financial payables | (5,767) | (5,847) | |
Net assets | 15,248 | 11,275 | |
Not held at fair value | |||
Disclosure of detailed information about financial instruments [line items] | |||
Cash and cash equivalents | 6,829 | 3,970 | |
Investments in equity shares and funds | 0 | 0 | |
Other investments, including loans and pooled funds | 184 | 138 | |
Trade and other financial receivables | 1,670 | 1,479 | |
Forward contracts and option contracts: designated as hedges | 0 | 0 | |
Forward contracts and option contracts, not designated as hedges | 0 | 0 | |
Derivatives related to net debt | 0 | 0 | |
Trade and other financial payables | (5,600) | (5,817) | |
Net assets | 3,083 | (230) | |
Level 1 | Fair value | |||
Disclosure of detailed information about financial instruments [line items] | |||
Cash and cash equivalents | 7,198 | 6,411 | |
Investments in equity shares and funds | 67 | 35 | |
Other investments, including loans and pooled funds | 2,531 | 2,563 | |
Trade and other financial receivables | 2 | 5 | |
Forward contracts and option contracts: designated as hedges | 0 | 0 | |
Forward contracts and option contracts, not designated as hedges | 0 | 0 | |
Derivatives related to net debt | 0 | 0 | |
Trade and other financial payables | 0 | 0 | |
Net assets | 9,798 | 9,014 | |
Level 2 | Fair value | |||
Disclosure of detailed information about financial instruments [line items] | |||
Cash and cash equivalents | 0 | 0 | |
Investments in equity shares and funds | 0 | 0 | |
Other investments, including loans and pooled funds | 0 | 0 | |
Trade and other financial receivables | 2,122 | 1,802 | |
Forward contracts and option contracts: designated as hedges | 0 | 7 | |
Forward contracts and option contracts, not designated as hedges | 54 | 69 | |
Derivatives related to net debt | 111 | 248 | |
Trade and other financial payables | (167) | (30) | |
Net assets | 2,120 | 2,096 | |
Level 3 | Fair value | |||
Disclosure of detailed information about financial instruments [line items] | |||
Cash and cash equivalents | 0 | 0 | |
Investments in equity shares and funds | 46 | 40 | |
Other investments, including loans and pooled funds | 240 | 198 | |
Trade and other financial receivables | 0 | 0 | |
Forward contracts and option contracts: designated as hedges | (118) | 46 | |
Forward contracts and option contracts, not designated as hedges | 79 | 111 | |
Derivatives related to net debt | 0 | 0 | |
Trade and other financial payables | 0 | 0 | |
Net assets | $ 247 | $ 395 |
Financial instruments disclos_7
Financial instruments disclosures - Summary of changes in fair value of Level 3 financial assets and financial liabilities (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Disclosure of detailed information about financial instruments [line items] | |
Currency translation adjustments | $ (109) |
Level 3 | |
Disclosure of detailed information about financial instruments [line items] | |
Opening balance | 395 |
Currency translation adjustments | (3) |
– consolidated sales revenue | 15 |
– net operating costs | (18) |
– net operating costs | 33 |
Total unrealised gains transferred into other comprehensive income | (172) |
Disposals/maturity of financial instruments | (3) |
Closing balance | 247 |
Net gains included in the income statement for assets and liabilities held at period end | $ 26 |
Segmental information - Summary
Segmental information - Summary of performance of operating segments (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of operating segments [line items] | ||
Consolidated sales revenue | $ 33,083 | $ 19,362 |
Underlying EBITDA | 21,037 | 9,640 |
Underlying earnings | 12,166 | 4,750 |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 12,313 | 3,316 |
Capital expenditure | 3,310 | 2,665 |
Proceeds from disposal of property, plant and equipment | 26 | 28 |
Capital expenditure | 3,336 | 2,693 |
Depreciation and amortisation expense | 2,307 | 2,092 |
Other operations | ||
Disclosure of operating segments [line items] | ||
Consolidated sales revenue | 85 | 158 |
Underlying EBITDA | (4) | 1 |
Underlying earnings | (51) | (29) |
Capital expenditure | 0 | 1 |
Depreciation and amortisation expense | 92 | 99 |
Product group | ||
Disclosure of operating segments [line items] | ||
Consolidated sales revenue | 34,628 | 20,333 |
Underlying EBITDA | 21,420 | 10,004 |
Underlying earnings | 12,466 | 5,022 |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 12,466 | 5,022 |
Capital expenditure | 3,395 | 2,802 |
Depreciation and amortisation expense | 2,514 | 2,367 |
Other items | ||
Disclosure of operating segments [line items] | ||
Capital expenditure | 35 | 22 |
Depreciation and amortisation expense | 42 | 39 |
Share of equity accounted units | ||
Disclosure of operating segments [line items] | ||
Share of equity accounted units | (1,545) | (971) |
Capital expenditure | (120) | (159) |
Depreciation and amortisation expense | (249) | (314) |
Depreciation and amortisation of equity accounted units | ||
Disclosure of operating segments [line items] | ||
Depreciation and amortisation expense | (249) | (314) |
Central pensions, share-based payments, insurance and derivatives | ||
Disclosure of operating segments [line items] | ||
Underlying EBITDA | 119 | 102 |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 120 | 97 |
Restructuring, project and one-off costs | ||
Disclosure of operating segments [line items] | ||
Underlying EBITDA | (36) | (72) |
Profit/(loss) after tax – attributable to owners of Rio Tinto | (23) | (53) |
Central costs | ||
Disclosure of operating segments [line items] | ||
Underlying EBITDA | (346) | (273) |
Profit/(loss) after tax – attributable to owners of Rio Tinto | (294) | (233) |
Central exploration and evaluation | ||
Disclosure of operating segments [line items] | ||
Underlying EBITDA | (120) | (121) |
Profit/(loss) after tax – attributable to owners of Rio Tinto | (100) | (97) |
Net interest | ||
Disclosure of operating segments [line items] | ||
Profit/(loss) after tax – attributable to owners of Rio Tinto | (3) | 14 |
Underlying earnings | ||
Disclosure of operating segments [line items] | ||
Profit/(loss) after tax – attributable to owners of Rio Tinto | 12,166 | 4,750 |
Operating segments | ||
Disclosure of operating segments [line items] | ||
Capital expenditure | 3,395 | 2,802 |
Depreciation and amortisation expense | 2,514 | 2,367 |
Operating segments | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Consolidated sales revenue | 34,688 | 20,257 |
Underlying EBITDA | 21,430 | 10,021 |
Underlying earnings | 12,520 | 5,057 |
Capital expenditure | 3,395 | 2,801 |
Depreciation and amortisation expense | 2,422 | 2,268 |
Operating segments | Iron Ore | ||
Disclosure of operating segments [line items] | ||
Consolidated sales revenue | 21,707 | 11,465 |
Underlying EBITDA | 16,060 | 7,698 |
Underlying earnings | 10,216 | 4,563 |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 10,216 | 4,563 |
Capital expenditure | 1,912 | 1,185 |
Depreciation and amortisation expense | 1,022 | 840 |
Operating segments | Aluminium | ||
Disclosure of operating segments [line items] | ||
Consolidated sales revenue | 5,932 | 4,487 |
Underlying EBITDA | 1,924 | 925 |
Underlying earnings | 921 | 193 |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 921 | 193 |
Capital expenditure | 524 | 482 |
Depreciation and amortisation expense | 645 | 594 |
Operating segments | Copper | ||
Disclosure of operating segments [line items] | ||
Consolidated sales revenue | 3,779 | 1,983 |
Underlying EBITDA | 2,048 | 686 |
Underlying earnings | 885 | 111 |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 885 | 111 |
Capital expenditure | 750 | 987 |
Depreciation and amortisation expense | 523 | 568 |
Operating segments | Minerals | ||
Disclosure of operating segments [line items] | ||
Consolidated sales revenue | 3,270 | 2,322 |
Underlying EBITDA | 1,398 | 712 |
Underlying earnings | 498 | 190 |
Profit/(loss) after tax – attributable to owners of Rio Tinto | 498 | 190 |
Capital expenditure | 209 | 147 |
Depreciation and amortisation expense | 232 | 266 |
Operating segments | Other operations | ||
Disclosure of operating segments [line items] | ||
Consolidated sales revenue | 85 | 158 |
Profit/(loss) after tax – attributable to owners of Rio Tinto | (51) | (29) |
Capital expenditure | 0 | 1 |
Depreciation and amortisation expense | 92 | 99 |
Inter-segment transactions | ||
Disclosure of operating segments [line items] | ||
Consolidated sales revenue | (145) | (82) |
Underlying EBITDA | (6) | (18) |
Underlying earnings | (3) | (6) |
Profit/(loss) after tax – attributable to owners of Rio Tinto | $ (3) | $ (6) |
Segmental information - Narrati
Segmental information - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of operating segments [line items] | ||
Percentage of capital expenditure | 100.00% | |
Percentage of depreciation and amortisation | 100.00% | |
Capitalised depreciation | $ 54 | $ 118 |
Net foreign exchange loss | 4 | 170 |
Net foreign exchange gain | 351 | 21 |
Subsidiaries | ||
Disclosure of operating segments [line items] | ||
Share of sales revenue of equity accounted units | 22 | (15) |
Gross product sales | ||
Disclosure of operating segments [line items] | ||
Share of sales revenue of equity accounted units | $ 1,567 | $ 986 |
Segmental information - Reconci
Segmental information - Reconciliation of underlying EBITDA to profit before taxation (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure Of Reconciliation Of Underlying EBITDA To Profit Before Taxation [Abstract] | ||
Underlying EBITDA | $ 21,037 | $ 9,640 |
(Losses)/gains on embedded commodity derivatives not qualifying for hedge accounting (including exchange) | (2) | 53 |
Change in closure estimates (non-operating and fully impaired sites) | (175) | (172) |
Depreciation and amortisation in subsidiaries and equity accounted units | (2,502) | (2,288) |
Impairment charges | 0 | (1,163) |
Taxation and finance items in equity accounted units | (365) | (141) |
Finance items | 56 | (650) |
Profit before taxation | $ 18,049 | $ 5,279 |
Segmental information - Recon_2
Segmental information - Reconciliation of underlying earnings to net earnings (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Exchange and derivative gains/(losses), pre-tax [abstract] | ||
Underlying earnings, pre-tax | $ 17,918 | |
Impairment loss | 0 | $ 1,134 |
Exchange gains/(losses) on net debt and intragroup balances, pre-tax | 374 | |
Losses on currency and interest rate derivatives not qualifying for hedge accounting, pre-tax | (52) | |
(Losses)/gains on embedded commodity derivatives not qualifying for hedge accounting, pre-tax | (16) | |
Net losses from movements to closure estimates (non-operating and fully impaired sites), pre-tax | (175) | |
Items excluded from underlying earnings pre-tax | 131 | |
Profit before taxation | 18,049 | 5,279 |
Exchange and derivative gains/(losses), tax [abstract] | ||
Underlying earnings, tax | (4,999) | |
Impairment charges, tax | 0 | |
Exchange gains/(losses) on net debt and intragroup balances, tax | (34) | |
Losses on currency and interest rate derivatives not qualifying for hedge accounting, tax | 10 | |
(Losses)/gains on embedded commodity derivatives not qualifying for hedge accounting, tax | 0 | |
Net losses from movements to closure estimates (non-operating and fully impaired sites, tax | 42 | |
Total excluded from underlying earnings, tax | 18 | |
Taxation | (4,981) | (1,828) |
Exchange and derivative gains/(losses), non-controlling interests [abstract] | ||
Underlying earnings attributable to noncontrolling interests | (753) | |
Non-controlling interests | 0 | |
Exchange gains/(losses) on net debt and intragroup balances, noncontrolling interests | 7 | |
Losses on currency and interest rate derivatives not qualifying for hedge accounting, noncontrolling interests | (3) | |
(Losses)/gains on embedded commodity derivatives not qualifying for hedge accounting, noncontrolling interests | (6) | |
Net losses from movements to closure estimates (non-operating and fully impaired sites, noncontrolling interests | 0 | |
Total excluded from underlying earnings, noncontrolling interests | (2) | |
Profit (loss), attributable to non-controlling interests | (755) | (135) |
Exchange and derivative gains/(losses), net [abstract] | ||
Underlying earnings, net | 12,166 | 4,750 |
Impairment charges, net | 0 | 1,033 |
Exchange gains/(losses) on net debt and intragroup balances, net | 347 | (149) |
Losses on currency and interest rate derivatives not qualifying for hedge accounting, net | (45) | (167) |
(Losses)/gains on embedded commodity derivatives not qualifying for hedge accounting, net | (22) | 33 |
Net losses from movements to closure estimates (non-operating and fully impaired sites, net | (133) | (118) |
Total excluded from underlying earnings, net | 147 | (1,434) |
Net earnings, attributable to owners of Rio Tinto | $ 12,313 | $ 3,316 |
Segmental information - additio
Segmental information - additional information - Disclosure of sales revenue by destination (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of geographical areas [line items] | ||
Sales revenue by destination (as a percent) | 100.00% | 100.00% |
Consolidated sales revenue | $ 33,083 | $ 19,362 |
China | ||
Disclosure of geographical areas [line items] | ||
Sales revenue by destination (as a percent) | 59.90% | 54.90% |
Consolidated sales revenue | $ 19,805 | $ 10,633 |
Asia (excluding China and Japan) | ||
Disclosure of geographical areas [line items] | ||
Sales revenue by destination (as a percent) | 9.50% | 11.10% |
Consolidated sales revenue | $ 3,157 | $ 2,155 |
United States of America | ||
Disclosure of geographical areas [line items] | ||
Sales revenue by destination (as a percent) | 11.50% | 12.40% |
Consolidated sales revenue | $ 3,816 | $ 2,392 |
Japan | ||
Disclosure of geographical areas [line items] | ||
Sales revenue by destination (as a percent) | 7.20% | 8.30% |
Consolidated sales revenue | $ 2,373 | $ 1,598 |
Europe (excluding UK) | ||
Disclosure of geographical areas [line items] | ||
Sales revenue by destination (as a percent) | 5.00% | 5.90% |
Consolidated sales revenue | $ 1,667 | $ 1,143 |
Canada | ||
Disclosure of geographical areas [line items] | ||
Sales revenue by destination (as a percent) | 2.40% | 2.90% |
Consolidated sales revenue | $ 793 | $ 585 |
Australia | ||
Disclosure of geographical areas [line items] | ||
Sales revenue by destination (as a percent) | 1.60% | 1.80% |
Consolidated sales revenue | $ 519 | $ 351 |
UK | ||
Disclosure of geographical areas [line items] | ||
Sales revenue by destination (as a percent) | 0.50% | 0.60% |
Consolidated sales revenue | $ 166 | $ 112 |
Other countries | ||
Disclosure of geographical areas [line items] | ||
Sales revenue by destination (as a percent) | 2.40% | 2.10% |
Consolidated sales revenue | $ 787 | $ 393 |
Segmental information - addit_2
Segmental information - additional information - Consolidated sales revenue by product (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of products and services [line items] | ||
Revenue from contracts with customers | $ 31,803 | $ 19,316 |
Other Revenue | 1,280 | 46 |
Consolidated sales revenue | 33,083 | 19,362 |
Share of equity accounted unit sales and intra-subsidiary/equity accounted unit sales | ||
Disclosure of products and services [line items] | ||
Gross product sales | 1,545 | 971 |
Gross product sales | ||
Disclosure of products and services [line items] | ||
Consolidated sales revenue | 34,628 | 20,333 |
Iron Ore | ||
Disclosure of products and services [line items] | ||
Revenue from contracts with customers | 21,964 | 12,182 |
Other Revenue | 1,108 | 82 |
Consolidated sales revenue | 23,072 | 12,264 |
Aluminium, Alumina and Bauxite | ||
Disclosure of products and services [line items] | ||
Revenue from contracts with customers | 5,733 | 4,454 |
Other Revenue | 84 | (19) |
Consolidated sales revenue | 5,817 | 4,435 |
Copper | ||
Disclosure of products and services [line items] | ||
Revenue from contracts with customers | 1,472 | 642 |
Other Revenue | 77 | (9) |
Consolidated sales revenue | 1,549 | 633 |
Industrial minerals | ||
Disclosure of products and services [line items] | ||
Revenue from contracts with customers | 1,141 | 991 |
Other Revenue | 4 | (7) |
Consolidated sales revenue | 1,145 | 984 |
Gold | ||
Disclosure of products and services [line items] | ||
Revenue from contracts with customers | 506 | 214 |
Other Revenue | (6) | 4 |
Consolidated sales revenue | 500 | 218 |
Diamonds | ||
Disclosure of products and services [line items] | ||
Revenue from contracts with customers | 160 | 141 |
Other Revenue | 0 | 0 |
Consolidated sales revenue | 160 | 141 |
Other products(b) | ||
Disclosure of products and services [line items] | ||
Revenue from contracts with customers | 827 | 692 |
Other Revenue | 13 | (5) |
Consolidated sales revenue | 840 | 687 |
Uranium | ||
Disclosure of products and services [line items] | ||
Consolidated sales revenue | $ 76 | $ 149 |
Other disclosures - Additional
Other disclosures - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Other Disclosures [Line Items] | ||
Capital commitments | $ 3,059 | $ 3,152 |
Contractual capital commitments | 1,700 | 1,500 |
Contingent liabilities indemnities and other performance guarantees | 140 | 146 |
Contractual payments | 10.5 | |
Joint ventures | ||
Other Disclosures [Line Items] | ||
Capital commitments | $ 9 | $ 9 |
Other disclosures - Summary of
Other disclosures - Summary of transactions and balances with equity accounted units (Detail) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Other Disclosures [Line Items] | |||
Dividends from equity accounted units | $ 726 | $ 183 | |
Investments in equity accounted units | 3,660 | $ 3,764 | |
Investment in equity accounted units | |||
Other Disclosures [Line Items] | |||
Purchases from equity accounted units | (543) | (519) | |
Sales to equity accounted units | 205 | 119 | |
Dividends from equity accounted units | 726 | 183 | |
Net receipts/(funding) from/of equity accounted units | 28 | $ (14) | |
Investments in equity accounted units | 3,660 | 3,764 | |
Loans to equity accounted units | 0 | 41 | |
Trade and other receivables: amounts due from equity accounted units | 246 | 251 | |
Trade and other payables: amounts due to equity accounted units | $ (240) | $ (241) |
Other disclosures - Subsidiarie
Other disclosures - Subsidiaries financial information (Detail) - USD ($) $ in Millions | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |||
Disclosure of subsidiaries [line items] | |||||
Revenue | $ 33,083 | $ 19,362 | |||
Profit after tax for the period | 13,068 | 3,451 | |||
– attributable to non-controlling interests | 755 | 135 | |||
– attributable to Rio Tinto | 12,313 | 3,316 | |||
Other comprehensive loss | 35 | (1,141) | |||
Total comprehensive income | 13,103 | [1] | 2,310 | [2] | |
Non-current assets | 77,676 | $ 76,535 | |||
Current assets | 25,765 | 20,855 | |||
Current liabilities | (12,076) | (11,607) | |||
Non-current liabilities | (33,196) | (33,880) | |||
Net assets | 58,169 | 51,903 | |||
– attributable to non-controlling interests | 5,194 | 4,849 | |||
– attributable to Rio Tinto | 52,975 | 47,054 | |||
Cash flow from operations | 13,661 | 5,628 | |||
Dividends paid to holders of non-controlling interests in subsidiaries | (407) | (215) | |||
Borrowings | 12,405 | 12,653 | |||
Goodwill | 945 | 946 | |||
Iron Ore Company of Canada | |||||
Disclosure of subsidiaries [line items] | |||||
Revenue | 1,718 | 1,011 | |||
Profit after tax for the period | 654 | 257 | |||
– attributable to non-controlling interests | 271 | 106 | |||
– attributable to Rio Tinto | 383 | 151 | |||
Other comprehensive loss | 96 | (91) | |||
Total comprehensive income | 750 | 166 | |||
Non-current assets | 2,879 | 2,733 | |||
Current assets | 840 | 670 | |||
Current liabilities | (493) | (462) | |||
Non-current liabilities | (1,034) | (993) | |||
Net assets | 2,192 | 1,948 | |||
– attributable to non-controlling interests | 907 | 804 | |||
– attributable to Rio Tinto | 1,285 | 1,144 | |||
Cash flow from operations | 964 | 403 | |||
Dividends paid to holders of non-controlling interests in subsidiaries | (206) | 0 | |||
Turquoise Hill | |||||
Disclosure of subsidiaries [line items] | |||||
Revenue | 844 | 409 | |||
Profit after tax for the period | 426 | (23) | |||
– attributable to non-controlling interests | 211 | (89) | |||
– attributable to Rio Tinto | 215 | 66 | |||
Other comprehensive loss | 5 | (2) | |||
Total comprehensive income | 431 | (25) | |||
Non-current assets | 11,789 | 10,930 | |||
Current assets | 1,033 | 1,496 | |||
Current liabilities | (530) | (540) | |||
Non-current liabilities | (4,392) | (4,404) | |||
Net assets | 7,900 | 7,482 | |||
– attributable to non-controlling interests | 2,600 | 2,424 | |||
– attributable to Rio Tinto | 5,300 | 5,058 | |||
Cash flow from operations | 95 | 29 | |||
Dividends paid to holders of non-controlling interests in subsidiaries | 0 | 0 | |||
Robe River Mining Co Pty Ltd | |||||
Disclosure of subsidiaries [line items] | |||||
Revenue | 1,289 | 734 | |||
Profit after tax for the period | 752 | 403 | |||
– attributable to non-controlling interests | 301 | 158 | |||
– attributable to Rio Tinto | 451 | 245 | |||
Other comprehensive loss | (80) | (88) | |||
Total comprehensive income | 672 | 315 | |||
Non-current assets | 3,535 | 3,452 | |||
Current assets | 1,134 | 865 | |||
Current liabilities | (583) | (380) | |||
Non-current liabilities | (424) | (255) | |||
Net assets | 3,662 | 3,682 | |||
– attributable to non-controlling interests | 1,463 | 1,397 | |||
– attributable to Rio Tinto | 2,199 | 2,285 | |||
Cash flow from operations | 1,134 | 665 | |||
Dividends paid to holders of non-controlling interests in subsidiaries | (201) | (211) | |||
Other Companies And Eliminations | |||||
Disclosure of subsidiaries [line items] | |||||
Revenue | 1,504 | 851 | |||
Profit after tax for the period | 841 | 424 | |||
– attributable to non-controlling interests | 0 | 0 | |||
– attributable to Rio Tinto | 841 | 424 | |||
Other comprehensive loss | (37) | (38) | |||
Total comprehensive income | 804 | 386 | |||
Non-current assets | 4,238 | 4,247 | |||
Current assets | 1,870 | 2,239 | |||
Current liabilities | (339) | (414) | |||
Non-current liabilities | (4,234) | (4,752) | |||
Net assets | 1,535 | 1,320 | |||
– attributable to non-controlling interests | 0 | 0 | |||
– attributable to Rio Tinto | 1,535 | 1,320 | |||
Cash flow from operations | 1,643 | 1,066 | |||
Dividends paid to holders of non-controlling interests in subsidiaries | 0 | 0 | |||
Robe river iron associates | |||||
Disclosure of subsidiaries [line items] | |||||
Revenue | 2,793 | 1,585 | |||
Profit after tax for the period | 1,593 | 827 | |||
– attributable to non-controlling interests | 301 | 158 | |||
– attributable to Rio Tinto | 1,292 | 669 | |||
Other comprehensive loss | (117) | (126) | |||
Total comprehensive income | 1,476 | 701 | |||
Non-current assets | 7,773 | 7,699 | |||
Current assets | 3,004 | 3,104 | |||
Current liabilities | (922) | (794) | |||
Non-current liabilities | (4,658) | (5,007) | |||
Net assets | 5,197 | 5,002 | |||
– attributable to non-controlling interests | 1,463 | 1,397 | |||
– attributable to Rio Tinto | 3,734 | 3,605 | |||
Cash flow from operations | 2,777 | 1,731 | |||
Dividends paid to holders of non-controlling interests in subsidiaries | (201) | $ (211) | |||
North Mining Limited | Robe river iron associates | |||||
Disclosure of subsidiaries [line items] | |||||
Goodwill | 375 | 383 | |||
Amended and Restated Shareholders Agreement, Amended June 08, 2011 | Erdenes Oyu Tolgoi LLC | |||||
Disclosure of subsidiaries [line items] | |||||
Borrowings | 1,399 | 1,378 | |||
Interest receivable | $ 877 | $ 804 | |||
Amended and Restated Shareholders Agreement, Amended June 08, 2011 | Erdenes Oyu Tolgoi LLC | Floating interest rate | |||||
Disclosure of subsidiaries [line items] | |||||
Borrowings, interest rate basis | 6.50% | ||||
[1] | Refer to Group statement of comprehensive income for further details. | ||||
[2] | Refer to Group statement of comprehensive income for further details. |
Other disclosures - Summary fin
Other disclosures - Summary financial information for joint ventures by fair value (Detail) - USD ($) $ in Millions | 6 Months Ended | |||||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | ||||
Disclosure of joint ventures [line items] | ||||||
Revenue | $ 33,083 | $ 19,362 | ||||
Depreciation and amortisation | (2,307) | (2,092) | ||||
Finance expense | [1] | (91) | (169) | |||
Taxation | (4,981) | (1,828) | ||||
Profit after tax for the period | 13,068 | 3,451 | ||||
Other comprehensive income/(loss) | 35 | (1,141) | ||||
Total comprehensive income | 13,103 | [2] | 2,310 | [3] | ||
Non-current assets | 77,676 | $ 76,535 | ||||
Current assets | 25,765 | 20,855 | ||||
Current liabilities | (12,076) | (11,607) | ||||
Non-current liabilities | (33,196) | (33,880) | ||||
Net assets | 58,169 | 51,903 | ||||
Cash and cash equivalents | 14,027 | 6,269 | 10,381 | |||
Deferred tax liabilities | 3,501 | 3,239 | ||||
Investment in equity accounted units | ||||||
Disclosure of joint ventures [line items] | ||||||
Deferred tax liabilities | 334 | 358 | ||||
Minera Escondida Limitada | ||||||
Disclosure of joint ventures [line items] | ||||||
Revenue | 4,953 | 3,137 | ||||
Depreciation and amortisation | (580) | (797) | ||||
Other operating costs | (1,506) | (1,243) | ||||
Operating profit | 2,867 | 1,097 | ||||
Finance expense | (73) | (70) | ||||
Taxation | (1,034) | (370) | ||||
Profit after tax for the period | 1,760 | 657 | ||||
Other comprehensive income/(loss) | 40 | (27) | ||||
Total comprehensive income | 1,800 | 630 | ||||
Non-current assets | 11,710 | 11,833 | ||||
Current assets | 3,010 | 3,107 | ||||
Current liabilities | (1,777) | (1,813) | ||||
Non-current liabilities | (4,796) | (4,560) | ||||
Net assets | 8,147 | 8,567 | ||||
Cash and cash equivalents | 887 | 1,103 | ||||
– current financial liabilities | (577) | (790) | ||||
– non-current financial liabilities | (2,800) | (2,560) | ||||
Dividends received from joint venture (Rio Tinto share) | 720 | 183 | ||||
Sohar Aluminium Co. L.L.C. | ||||||
Disclosure of joint ventures [line items] | ||||||
Revenue | 420 | 325 | ||||
Depreciation and amortisation | (60) | (55) | ||||
Other operating costs | (245) | (225) | ||||
Operating profit | 115 | 45 | ||||
Finance expense | (10) | (15) | ||||
Taxation | (15) | (5) | ||||
Profit after tax for the period | 90 | 25 | ||||
Other comprehensive income/(loss) | 0 | 0 | ||||
Total comprehensive income | 90 | 25 | ||||
Non-current assets | 1,805 | 1,850 | ||||
Current assets | 420 | 270 | ||||
Current liabilities | (150) | (675) | ||||
Non-current liabilities | (745) | (200) | ||||
Net assets | 1,330 | 1,245 | ||||
Cash and cash equivalents | 145 | 30 | ||||
– current financial liabilities | (55) | (565) | ||||
– non-current financial liabilities | (575) | $ (30) | ||||
Dividends received from joint venture (Rio Tinto share) | $ 0 | $ 0 | ||||
[1] | Finance costs in the income statement include hedging adjustments and are net of amounts capitalised of US$174 million (30 June 2020: US$175 million). | |||||
[2] | Refer to Group statement of comprehensive income for further details. | |||||
[3] | Refer to Group statement of comprehensive income for further details. |